GameStop Q2 sales down 45% as more stores due to close down
US retailer also filed an offering of up to 20 million shares
GameStop's financial results for the second quarter (ended August 3, 2024) showed a continuing decline for the company, with a 45% drop in sales year-on-year.
Net sales amounted to $798 million, versus $1.16 billion in Q2 2023. Its net income was on the rise compared to last year though, at $14.8 million. For the same period last year, GameStop had recorded a loss of $2.8 million.
Looking at its sales in more detail, purchases dropped across the board, down 24.5% for hardware and accessories, 47.8% for software, and 17.7% for collectibles.
As a result of this financial performance, GameStop is looking to close more stores, Reuters reported. The retailer reportedly said the outlets to shutter are currently being identified and that it's looking to shutter more stores than it did in the past few years.
GameStop also filed an offering of up to 20 million shares, Reuters said, with the aim to use the proceeds "for general corporate purposes, which may include acquisitions and investments in a manner consistent with [its] investment policy." The publication added that GameStop's stock plunged 10% following this announcement.
GameStop's Q1 was equally bleak, with its sales dropping 26% year-on-year and a net loss of $32.3 million.
Earlier this year, the retailer's shares spiked following the return of meme stock personality Keith 'Roaring Kitty' Gill on social media X, three years after being an instigator of the original 2021 GameStop meme stock rally.
GameStop shut down its crypto marketplace earlier this year, and reportedly went through a round of redundancies. It also shuttered long running publication Game Informer.