The U.S. collectibles market is expected to surpass $100 billion by 2033, and GameStop has plans to keep cashing in.
While GameStop reported a sharp sales slump for its fiscal second quarter, the videogame retailer saw profit boosted from its eBay stake, and collectibles and trading cards provided a rare bright spot.
Net sales dropped to $790.2 million from $972.2 million a year ago, with sales decreasing in the videogames segment and preowned and refurbished division. Management attributed the drop to the 2025 launch of Nintendo Switch 2, planned store closures, and the divestiture of operations in France.
Under the hood of this sales decline, however, GameStop's collectibles were a big boost. Collectibles and trading card sales surged 57% from the prior year to $356.3 million, now accounting for roughly 45% of total sales. Management also said Tuesday that operating income hit a fiscal second-quarter record of $160.2 million.
GameStop's $4.9 billion stake in eBay also gave the videogame retailer some financial cushion for the fiscal second quarter.
GameStop recorded $238 million in net gains from its eBay investment. A $75 million loss on digital assets, however, partially offset this profit. Net income for the fiscal second quarter totaled $298 million, up from $168.6 million in the prior year.
Earlier this year, GameStop CEO Ryan Cohen made an unsolicited offer to buy online marketplace platform eBay for about $56 billion, a step toward expanding its collectible and trading cards market. But eBay rejected Cohen's bid in May, describing GameStop's proposal as "neither credible nor attractive."
GameStop stock dropped 1.2% to $18.94 on Tuesday. Shares have fallen 5.4% this year, according to Dow Jones Market Data. The company released preliminary results on Aug. 31.
GameStop now expects to generate over $650 million in adjusted earnings before interest, taxes, depreciation, and amortization, or Ebitda, for fiscal 2026, up from its previous outlook of over $600 million of adjusted Ebitda. The number is way up from fiscal 2025, when adjusted Ebitda totaled $345.4 million.