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GameStop reported a second-quarter profit as sales rose and interest income and crypto gains lifted results, while the retailer continued to tighten costs and streamline overseas operations.
The Grapevine, Texas-based company posted net income of $168.6 million for the three months ended August 2, up from $14.8 million a year earlier.
Revenue increased to $972.2 million from $798.3 million a year ago and from $732.4 million in the prior quarter.
Operating income was $66.4 million, compared with an operating loss of $22 million in the same period last year, as selling, general, and administrative expenses decreased to $218.8 million from $270.8 million.
GameStop said it purchased 4,710 BTC during the quarter for $500 million under a digital-assets investment policy adopted earlier this year.
The holdings were valued at $528.6 million at quarter-end, generating an unrealized gain of $28.6 million measured using Coinbase pricing.
The company ended the quarter with $8.7 billion in cash, cash equivalents, and marketable securities, excluding digital assets.
During the quarter, it raised $2.7 billion via convertible debt and completed the divestiture of its Canada operations; France is classified as assets held for sale.
Hardware and accessories accounted for 60.9% of quarterly sales, software 15.7%, and collectibles 23.4%.
On an adjusted basis, operating income was $64.7 million versus an adjusted operating loss of $31.6 million a year earlier.
GameStop stock is up 8.3% on the month to $24.93, according to Google Finance data.
Editor’s note: An earlier version misstated the quarter’s bottom line and revenue trend. GameStop reported a profit, and revenue rose quarter-over-quarter and year-over-year.
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