GameStop Corp. (GME) reported a 16.9% year-over-year decline in total net sales for Q1 of fiscal 2025, totaling $732.4 million, down from $881.8 million. The U.S. market accounted for 73.4% of sales, generating $537.5 million, though this was a 12.9% decrease from the prior year. Despite the sales drop, the company achieved an operating income of $33.6 million, a significant turnaround from a $25.3 million loss a year earlier.
International sales were less favorable, with Canada down 10.3% to $38.2 million and Europe declining 47.4% to $74.8 million. Canada’s operating loss increased to $22.2 million, while Europe’s losses widened to $16.8 million. GameStop highlighted the necessity to focus on profitable markets amidst ongoing international challenges.
In the last three months, GameStop shares fell 10.8%, while the stock trades at a forward price-to-sales ratio of 3.30, compared to the industry average of 3.74. The Zacks Consensus Estimate for fiscal 2025 suggests earnings could rise by 127.3%, but the outlook for fiscal 2026 anticipates a 52% decline.
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