GameStop (NYSE: GME) shares rose 10% in premarket trading Wednesday after the company reported stronger-than-expected second-quarter results, swinging to a profit on robust hardware and collectibles sales.
The video game retailer posted earnings of $0.25 per share, above the $0.16 consensus, while revenue climbed to $972.2 million from $798.3 million a year earlier, topping estimates of $823.3 million.
Operating income improved to $66.4 million from a loss of $22 million a year earlier as selling, general and administrative expenses declined to $218.8 million from $270.8 million. Net income surged to $168.6 million from $14.8 million. Adjusted net income reached $138.3 million, compared with $5.2 million in the prior year.
Collectibles sales grew 63% year-over-year, while hardware and accessories revenue jumped 31% to $592.1 million, helped by demand tied to Nintendo’s Switch 2 launch and a healthy pipeline of game releases driving console sales.
