GameStop reports Q2 2016 results

Update

CEO Paul Raines added some extra details to the retailer's financial results in an earnings call with investors, including an insight into the company's publishing deal with Insomniac.

"Song of the Deep has been above our targets for the first six weeks and is well above 120,000 units in sales. What is interesting is that we have built a complete physical, digital and collectible ecosystem around this intriguing IP working with another great partner at Insomniac Games to create a renewable franchise. Yes, we also take trades on this title," he said.

COO Tony Bartel added more detail on GameStop's future publishing plans:

"Playing the role of publisher, exclusive physical retailer and digital profit partner, GameStop is also proving a business model where it can invest smartly in new IPs and enjoy higher margins on the sale of these titles. Our pro forma gross margin for Song of the Deep is 63%," he said.

"Game Trust has a strong lineup of games in development with innovative developers such as Ready at Dawn, Frostbite and Tequila Works. These and future unannounced partnerships will continue to establish Game Trust as a leading disrupter in the $1 billion plus independent game market."

Original story

Retailer GameStop reported its Q2 2016 results today, showing a total global sales fall of 7.4%, to $1.63 billion for the quarter. Net earnings for the Q2 were $27.9 million.

"As expected, the continued growth and increased profit contribution of our non-physical gaming businesses drove our second quarter results," said CEO Paul Raines.

"Tech Brands sales grew more than 50%, omni-channel sales increased 16%, Collectibles sales more than doubled and year-to-date, more than half of GameStop's operating earnings have come from non-physical gaming categories. These new businesses offset a tough quarter for video gaming and prove that our diversification strategy is succeeding."

Notably pre-owned sales only fell 3.2% compared to the second quarter of 2015.