GameStop in surprise Q2 profit as cost cuts offset slump in revenue

Investing.com — GameStop reported Tuesday a surprise profit in Q2 as cost cuts helped offset a slump in revenue.

GameStop Corp (NYSE:GME) was 0.3% lower in afterhours trading following the news.

For the three months ended Aug. 3, the video game retailer reported a net profit of $2.08 a share on revenue of $798 million, compared with expectations for a loss of $0.09 a share on revenue of $895.7M.

The beat on the bottom line was driven by cost cuts that helped offset a 31% slump in Q2 revenue from a year earlier.

Selling, general, and administrative expenses fell to $270.8M in Q2 from $322.5M in the same period a year earlier.