Summary by Moomoo 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 decline was primarily driven by a 47.7% drop in software sales and a 24.4% decrease in hardware and accessories revenue. Gross profit margin improved to 31.2% from 26.3%.The company continued its cost optimization efforts, reducing selling, general and administrative expenses by 16% to $270.8 million. Interest income increased significantly to $39.5 million, up from $11.6 million last year, benefiting from higher returns on investments and proceeds from its at-the-market stock offering that raised approximately $3.1 billion.As of August 3, 2024, GameStop maintained a strong liquidity position with $4.2 billion in cash and marketable securities. The company has established an Investment Committee led by Chairman Ryan Cohen to manage its investment portfolio, and voluntarily terminated its $250 million revolving credit facility in August 2024 as it focuses on operating efficiency and strategic growth initiatives.
