Gaming retailer GameStop reported declining sales while managing to turn around an unexpected profit in its fiscal second quarter. Alongside sharing its Q2 results, the company also announced a 20 million share offering.
GameStop’s revenue came at $798 million, missing the analysts’ estimates of $896 million. It also marked a decline of 31.4% compared to revenue of $1.164 billion in the same period last year. The drop in sales is attributed to more consumers opting to make their video game purchases online.
However, GameStop also recorded a net income of $14.8 million, amounting to $0.04 in adjusted earnings per share, an improvement from a $2.8 million or $0.01 a share loss from a year ago. The analysts expected a loss of $0.09 per share.
Back in July, GameStop raised more than $2 billion from stock sales, which the company intended to use on acquisitions and mergers. Now, it will sell another 20 million shares, saying the proceeds will go toward “general corporate purposes.”
Additionally, GameStop intends to close some of its underperforming stores and is in the process of identifying such locations.
GameStop’s shares have dropped more than 10% after the Q2 report release. The company’s stock is 40.67% up year-to-date but has lost more than 50% of its value since peaking at $48.75 per share in May.