GameStop’s revenue is down, but the retailer posted a surprise profit

Key recommendations

• GameStop posted a surprise profit in the second quarter, but its sales fell 31% and missed expectations.

• The notable meme stock struggled on Tuesday ahead of its results, but the stock is still substantially higher year to date.

• GameStop has not issued guidance or scheduled an earnings call.

GameStop’s (GME) second-quarter sales fell year-over-year, missing Wall Street expectations, but the video game retailer managed to post a surprise profit.

Most recent revenue was $798 million, down 31% year-over-year and below the Visible Alpha analyst consensus. Net income rose to $14.8 million, or 4 cents per share, compared with a loss of $2.8 million, or 1 cent per share, a quarter earlier. Analysts expected the company’s losses to widen from year to year.

Shares of GameStop fell more than 3 percent ahead of Tuesday’s results and fell just under 1 percent after the bell. Shares are up as much as 30% in 2024, in part due to spikes in its share price earlier this year caused by posts from the meme influencer known as “Roaring Kitty.”

GameStop said it would not hold an earnings call, and the company did not release guidance.

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