"Its lone bright spot was once again collectibles, now 31% of revenue - up from 20% last year - and the only segment indicating growth. GameStop has flopped at pivoting to digital gaming, with software sales tanking 27%. It even hopped on the crypto treasury trend, stacking Bitcoin ( ) on its balance sheet, but the crypto winter crushed that bet, leaving holdings underwater."
"Hardware and accessories, the biggest segment at 45% of sales, dropped 12% to $367.4 million as physical consoles lose ground. Software plunged even harder, down 27% to $197.5 million, hammered by the digital shift. Collectibles, now the second-largest reportable segment at $256.1 million, rose 50% year-over-year, fueled by demand for Funko Pops and trading cards. Gross profit climbed to $273.4 million on tighter inventory and lower markdowns while cash swelled to $8.8 billion, bolstered by prior equity raises."
GameStop reported third-quarter results showing net income more than quadrupling to $77.1 million and operating income turning to a $41.3 million profit while revenue declined 4.6%. Hardware and accessories, representing 45% of sales, fell 12% to $367.4 million as physical console demand weakened, and software sales plunged 27% to $197.5 million amid a shift to digital downloads and subscriptions. Collectibles grew 50% to $256.1 million and now make up 31% of revenue, driven by Funko Pops and trading cards. Gross profit rose to $273.4 million on tighter inventory and lower markdowns, cash increased to $8.8 billion, and Bitcoin holdings remain underwater, prompting investor doubts and a stock decline.
Read at 24/7 Wall St.
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