GameStop Q2 sales fall

GameStop Corp.’s revenue fell short of expectations in the second quarter as a lack of new game titles cut into its core business.



Sales fell 7.4% to $1.63 billion in the quarter ended July 30. Same-store sales fell 10.6 %.



Net income rose 10% to $27.9 million, in line with Wall Street projections.



GameStop has been investing in businesses outside its core video-game sweet spot, most notably mobile phones and collectibles. It recently bought some 500 AT&T wireless stores, which expanded its AT&T store portfolio to 1,421 locations.



"As expected, the continued growth and increased profit contribution of our non-physical gaming businesses drove our second quarter results,” stated Paul Raines, CEO. “Tech Brands sales grew more than 50%, omnichannel sales increased 16%, Collectibles sales more than doubled and year-to-date, more than half of GameStop's operating earnings have come from non-physical gaming categories. These new businesses offset a tough quarter for video gaming and prove that our diversification strategy is succeeding."