GameStop posted preliminary second-quarter results on Monday showing net income between $290 million and $310 million, up from $168.6 million a year earlier, even as net sales fell to $780 million to $800 million from $972.2 million. The retailer attributed the profit jump to about $238 million in net gains from its eBay derivative asset and equity investment, partially offset by roughly $75 million in losses on digital assets. Operating income is expected to land between $150 million and $170 million, compared with $66.4 million in the prior-year quarter. Sales declined due to the prior-year launch of Nintendo Switch 2, planned store closures, and the divestiture of its France operations. GameStop also amended its plan to exchange approximately $1.4 billion in convertible notes, now offering noteholders about 55.5 million shares, or 73% of the consideration, and roughly $358.4 million in cash, or about 27%, reducing shareholder dilution. The exchange is expected to close on or about September 3, and GameStop stock rose 5% in premarket trading. Full results are due September 8.
GameStop Corp.Profit jump and reduced dilution from amended note exchange boost stock.
eBay Inc
Nintendo Co., Ltd.Sales decline partly due to prior-year Switch 2 launch, indicating lower demand.
