GameStop Has Sharp Rise in Collectibles, But Net Off 19%
GameStop’s net income in Q2 ended July 29 slipped 18.7% to $22 million as lagging sales of Xbox One consoles and new and preowned games offset sharp gains in sales of collectibles and the Nintendo Switch device. The earnings included a $7.3 million gain on the sale of videogames publisher Kongregate.
Sales of collectibles increased 36.1% to $122.5 million, driven by Pokemon and Marvel products, GameStop said. The retailer opened five collectible stores in Q2 to end the quarter with 99 ThinkGeek and Zing Pop Culture locations. GameStop’s targeting $650-$700 million in sales of collectibles in the fiscal year ending Dec. 31.
Overall, GameStop revenue rose 3.4% to $1.69 billion on a 1.9% increase in same-store sales, with a 1.4% decrease in the U.S. offset by 9.8% increase in international markets.
Contact: Robert Lloyd, Chief Financial Officer, 817-424-2000
