GameStop Corp. (GME) reported a strong performance in its collectibles segment for the first quarter of fiscal 2025, generating net sales of $211.5 million, a 54.6% increase from $136.8 million in the same period last year. Collectibles now make up 28.9% of total net sales compared to 15.5% a year earlier, indicating a diversification of revenue amid declines in hardware and software sales, which fell by 31.7% and 26.7%, respectively.
Despite this growth in collectibles, GameStop’s total revenues declined, and shares of GME have dropped 27.8% year-to-date, underperforming the industry average of 13.3%. GME currently trades at a forward price-to-sales ratio of 3.06X, below the industry average of 3.58X, with a Zacks Rank of #3 (Hold).
