GameStop (GME) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 were $798.3 million, down 31.4% year-over-year, with declines across all segments and product categories.

• Gross profit margin improved to 31.2% from 26.3% year-over-year, despite lower sales, due to better inventory management.

• Net income for Q2 2024 was $14.8 million, compared to a net loss of $2.8 million in Q2 2023.

• Cash and equivalents at quarter end rose to $4.2 billion, up from $894.7 million a year ago.

• Significant cost reductions in SG&A expenses and a $3.1 billion equity raise contributed to improved profitability.

Financial highlights

• Q2 2024 net sales: $798.3 million (down 31.4% year-over-year); six months: $1.68 billion (down 30.0%).

• Q2 2024 gross profit: $248.8 million (down 18.7%); gross margin: 31.2% (up from 26.3%).

• Q2 2024 operating loss: $22.0 million (vs. $16.6 million loss prior year).

• Q2 2024 net income: $14.8 million (vs. $2.8 million net loss prior year); EPS: $0.04 (vs. $(0.01)).

• Free cash flow for Q2 was $65.5 million, a significant improvement from negative $119.2 million last year.

Outlook and guidance

• Management continues to focus on cost containment, store portfolio optimization, and achieving sustained profitability.

• Ongoing review of international assets and store closures expected to continue.

• Management highlights significant risks and uncertainties, including industry cyclicality, supply chain, and consumer behavior shifts.

• No conference call or specific forward guidance provided for future quarters.