Summary by Futu AI
GameStop reported Q2 FY2024 net sales of $798.3 million, down 31.4% from $1.16 billion in the prior year, while posting a net profit of $14.8 million compared to a $2.8 million loss last year. The revenue decline was driven by a 47.7% drop in software sales, 24.4% decrease in hardware sales, and 17.9% fall in collectibles sales.Gross profit margin improved to 31.2% from 26.3% year-over-year, though gross profit decreased 18.7% to $248.8 million. Selling, general and administrative expenses fell 16% to $270.8 million due to cost reduction efforts and a $6.4 million legal settlement benefit. The company's cash position strengthened significantly to $4.2 billion, boosted by $3.1 billion raised through an at-the-market stock offering.The company continues to optimize its cost structure and store portfolio, having exited operations in Ireland, Switzerland, and Austria during fiscal 2023. Interest income surged to $39.5 million from $11.6 million last year due to higher returns on investments and proceeds from the stock offering. GameStop voluntarily terminated its $250 million revolving credit facility in August 2024.
