Dive Brief:
- GameStop’s third quarter net sales declined nearly 4.6% year over year to $821 million, per a company press release Tuesday. The gaming and electronics retailer swung from an operating loss the year prior to an operating income of $41.3 million for the period.
- The company’s net income during the quarter grew to $77.1 million, compared to last year’s $17.4 million. Additionally, SG&A expenses dropped almost 21.5% to $221.4 million, primarily due to “a reduction in labor-related, consulting services, and marketing costs of $23.6 million” stemming from larger cost-reduction efforts, per a U.S. Securities and Exchange Commission filing Tuesday.
- GameStop — which did not provide forward-looking guidance or host an earnings call with analysts — noted its Bitcoin holdings at the end of Q3 were valued at $519.4 million. This is a drop from the previous quarter’s Bitcoin asset valuation of $528.6 million.
Dive Insight:
GameStop’s latest earnings results come after second quarter wins in September, when it reported a 21.8% year-over-year net sales increase.
For the third quarter, GameStop net sales declined for its hardware and accessories category, as well as software. However, it did report an increase in collectibles sales for the quarter, which made up 31.2% of total net sales compared to 19.9% of the total in the year prior.
The retailer’s value drop in its Bitcoin holdings comes as the digital asset has recently experienced a price decline following a long period of record highs.
The electronics retailer has undergone massive changes over the past two years, namely in its approach to its international and domestic store footprint.
GameStop sold off its Canadian business in May to entrepreneur Stephan Tetrault. That came after an earlier announcement that the company would divest its Canadian and French operations.
Per GameStop’s latest SEC filing, the company still maintains some operations in Australia and Europe, with the Australian segment making up $110.2 million of its Q3 net sales.
The retailer closed almost 600 U.S. stores in 2024 and still expects to close “a significant number of additional stores in fiscal 2025” though it did not provide further details in its latest filing.
