GameStop Stock Surges on Strong Q2 Earnings and Hardware Sales Growth
GameStop shares jumped over 9% in pre-market trading following a robust second-quarter earnings report. The video game retailer posted $972.2 million in revenue, a 22% year-over-year increase, with adjusted earnings per share soaring to $0.25 from just $0.01 a year earlier. This marks the fifth consecutive quarter of profitability and earnings beats, signaling sustained momentum in the company's turnaround strategy.
Hardware and accessories sales drove the outperformance, climbing 31% to $592.1 million, fueled by demand for Nintendo's Switch 2 console. Collectibles revenue surged 63% to $227.6 million, offsetting a 27% decline in software sales. The results demonstrate GameStop's successful pivot toward high-margin hardware and exclusive merchandise.
