GameStop reports better-than-expected Q2 earnings, despite falling sales
Buoyed by strong demand for video game hardware and accessories, GameStop reported better-than-expected quarterly earnings on Tuesday, despite a decline in overall sales.
In a statement, CEO Matt Furlong said the company was "pleased" with the results, which he attributed to the "continued strength" of the video game industry and the company's "ongoing transformation. "
Key takeaways from GameStop's Q2 earnings report:
- Total sales fell 4.3% to $1.13 billion, driven by a decline in software sales
- Hardware sales rose 10.2% to $448.3 million, driven by demand for the latest consoles from Sony and Microsoft
- Accessories sales rose 6.7% to $326.5 million, driven by demand for gaming headsets, controllers, and other peripherals
- Digital sales rose 11.3% to $259.1 million, driven by the growth of downloadable content and online gaming
- Net income rose 18.4% to $112.6 million, or 98 cents per share, driven by the higher sales and lower expenses
GameStop's results come as the video game industry is facing a number of challenges, including the global chip shortage and the rising cost of living. However, the company said it is "well-positioned" to navigate these challenges and continue to grow its business.
"We are encouraged by our progress in the second quarter and remain confident in our ability to deliver long-term value for our shareholders," Furlong said.
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