:max_bytes(150000):strip_icc()/GettyImages-1248857294-5aba623b41384f8385e682efd7130ac1.jpg "What You Need to Know Ahead of GameStop Earnings Tuesday")
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Key Takeaways
- GameStop reports earnings after the closing bell on Tuesday, Sept. 10, with analysts expecting lower revenue and a slightly larger net loss than the second quarter of 2023.
- Comparable store sales are also projected to decline significantly, by about 23% compared to the same time last year.
- After massive fluctuations in price earlier this year due to Keith Gill, a key figure in the original meme stock trend, GameStop stock has had a much less volatile last few months.
GameStop (GME) reports quarterly financial results after the closing bell Tuesday, with analysts expecting lower revenue, a slightly larger net loss, and lower comparable store sales compared to the second quarter of fiscal 2023.
Analysts project GameStop revenue to decline to $900 million from $1.16 billion in the same quarter a year ago, according to estimates compiled by Visible Alpha. The video game retailer is expected to post a net loss of $5.3 million, up from the $2.8 million GameStop lost in the second quarter last year but much smaller than the $32.3 million loss GameStop reported in the first quarter.
The retailer unexpectedly released its first-quarter results early: They were posted before markets closed rather than after the bell as expected.
| Analyst Estimates for Q2 2024 | Q1 2024 | Q2 2023 | |
| Revenue | $900 million | $881.8 million | $1.16 billion |
| Diluted EPS (loss) | (1 cent) | (11 cents) | (1 cent) |
| Net Income (loss) | ($5.25 million) | ($32.3 million) | ($2.8 million) |
Key Metric: Comparable Store Sales
After comparable store sales rose just over 2% in the second quarter last year, analysts expect the key retail metric to drop nearly 23% year-over-year when GameStop reports Tuesday.
Several retailers have reported lower spending on discretionary areas, which video games would fall under, in recent quarters, as many Americans face higher prices for essentials and search for the best value before making a purchase.
Business Spotlight: Stock Much Calmer Than First Half of 2024
After a return of GameStop’s meme stock status in the first half of this year largely thanks to Keith Gill, also known online as “Roaring Kitty,” the stock has had a much less volatile summer. The retailer issued millions of new shares earlier this year.
The retailer could also provide new details on its newest bet on the concept of nostalgia among gamers, announcing late last month plans to convert some of its stores to “retro” locations, centered around selling older consoles and games.
GameStop shares rose more than 1% on Thursday, leaving them up more than 25% this year but well off highs seen in May and June.