Video game retailer GameStop reported a 14 percent increase in quarterly revenue and unveiled a new $2 billion share repurchase program, signaling confidence in its business transformation strategy and sending its shares higher in after-hours trading.
The company posted net sales of $835.3 million for the quarter ended May 2, up from $732.4 million a year earlier, supported by growing demand for trading cards and collectibles as consumers increasingly shift away from physical video game purchases.
GameStop has been expanding beyond its traditional gaming retail business, focusing on collectibles and other higher-growth categories as digital downloads continue to reshape the industry.
The company also reported a sharp jump in profitability, with net income reaching $389.6 million during the quarter, compared with $44.8 million in the same period last year.
Its board approved a new $2 billion stock buyback program that will remain in effect until June 2, 2029, replacing a previous authorization established in 2019.
The earnings report comes as GameStop continues pursuing a takeover of eBay despite resistance from the e-commerce giant.
GameStop recently increased its ownership stake in eBay to about 6.6 percent from roughly 5 percent, underscoring its commitment to a proposed $56 billion acquisition that eBay has already rejected.
Chief Executive Officer Ryan Cohen has argued that combining the two companies could generate significant cost savings and create a larger online commerce platform.
eBay, however, has dismissed the proposal, describing it as neither credible nor attractive.
Investors welcomed GameStop’s strong quarterly results and capital return plan, pushing the company’s shares up more than 7 percent in extended trading.
