GameStop Corp. projected second-quarter net sales between $780 million and $800 million, a decline from $972.2 million in the same period last year, citing planned store closures and the sale of its France operations.
The videogame retailer also forecast net income of $290 million to $310 million, up from $168.6 million in the prior-year quarter. The outlook includes approximately $238 million in net gains from its nearly 10% stake in eBay Inc., following the rejection of a takeover proposal in May. GameStop suffered a roughly $75 million loss on digital assets and related receivables, partially offsetting the gains.
Cash, cash equivalents and marketable securities were expected to total $5.05 billion to $5.07 billion, down from $8.69 billion at the end of the second quarter last year. GameStop’s shares fell about 2% in premarket trading following the announcement.
The company has pivoted its business model, reducing reliance on hardware sales in favor of trading cards and collectibles. GameStop’s second-quarter results are scheduled for release on September 8.
Bloomberg News previously reported that GameStop might withdraw its takeover bid for eBay and instead pursue a partnership or joint venture.
