GameStop reported first quarter net sales of $835.3 million, a 14% increase year-over-year, and a record quarterly net income of $389.6 million, or $0.66 per diluted share. The company swung to an operating income of $143.3 million from a loss of $10.8 million in the prior year, marking its highest first quarter operating income in company history.

Key Highlights

  • Collectibles revenue was the primary growth driver, increasing 65% year-over-year to $348.9 million, now representing 41.8% of total sales.
  • The company achieved record first quarter operating income of $143.3 million, swinging from a loss of $10.8 million a year ago, aided by a reduction in SG&A expenses to $201.6 million from $228.1 million.
  • Reported net income was significantly impacted by a $268.4 million unrealized gain on a derivative asset, which provides economic exposure to eBay Inc. common stock.
  • The Board of Directors approved a new $2.0 billion discretionary share repurchase authorization, replacing a previous plan from March 2019.