"The Q1 release in June highlighted cost cuts, divestitures, and a surprising swing to adjusted profitability despite ongoing revenue erosion. Estimates Snapshot Revenue: $823.25 million EPS (Normalized): $0.16 FY 2026 Revenue: $3.52 billion FY 2026 EPS: $0.73 FY 2027 Revenue: $3.14 billion FY 2027 EPS: $0.44 Consensus implies 3% revenue growth YoY versus $0.01 EPS in Q2 2024. For FY26, revenue is expected to decline nearly 8% YoY, but EPS is forecast to more than double on efficiency gains."
"SG&A leverage - Q1 SG&A dropped to $228.1M from $295.1M last year, enabling $27.5M in adjusted operating income. Investors want to see if this leaner cost base holds. Category mix - Collectibles rose to 28.9% of sales in Q1, while hardware and software shrank. Mix will be key to sustaining gross margin. Restructuring progress - The Canada divestiture closed in May, France remains classified as held-for-sale. Investors will look for any further portfolio moves."
GameStop reports fiscal Q2 amid expectations of modest revenue growth and improved EPS driven by efficiency. Estimates show revenue of $823.25 million and normalized EPS of $0.16 for Q2, with FY26 revenue projected to decline while EPS rises on cost savings. Key metrics include sharply reduced SG&A, a rising collectibles mix at 28.9% of sales, completed Canada divestiture and France held-for-sale, and a $6.4 billion cash position with 4,710 Bitcoin added. Inventory was cut to $421M from $676M year-over-year, raising readiness questions ahead of the holiday season.
Read at 24/7 Wall St.
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