Shares of GameStop (GME) are down 10% after the video game retailer reported that its sales in this year’s second quarter declined more than 30% from a year earlier.
The Texas-based company announced a surprise profit for its latest quarter, posting earnings per share (EPS) of $0.01 U.S., which was better than a loss of $0.09 U.S. expected on Wall Street.
However, GameStop, which is one of the more infamous meme stocks, reported second-quarter sales of $798 million U.S., down 31% from $1.16 billion U.S. a year earlier.
The Q2 sales figure was below the $896 million U.S. consensus estimate of analysts.
GameStop also announced that it plans to sell an additional 20 million shares at current market prices, representing 4.7% of the total shares outstanding.
The new stock sale will dilute the holdings of existing shareholders, contributing to the current decline in the company’s share price.
GameStop said that it ended the quarter with cash on hand of $4.20 billion U.S., up from $1.19 billion U.S. a year ago.
As is customary for the company, GameStop’s management team did not hold a conference call to discuss the latest earnings.
GameStop’s stock rose sharply earlier this year when influential trader Keith Gill, known online as “Roaring Kitty,” returned to social media and disclosed that he still owns the company’s stock.
Prior to today (Sept. 11), GameStop’s stock was up 40% on the year and trading at $23.45 U.S. per share.
