Video game retailer GameStop has forecast net sales of between $780m and $800m for its second quarter (Q2), ended 1 August 2026, down from $972.2m in the equivalent period a year earlier.

The US-based company pointed to three factors behind the anticipated decline: the launch of the Nintendo Switch 2 in the prior-year quarter, planned store closures, and the sale of its operations in France.

Despite the lower revenue outlook, GameStop expects operating income of $150m to $170m, up from $66.4m in Q2 2025.

Net income is projected at $290m to $310m, compared with $168.6m previously.

The retailer said the anticipated net income figure includes roughly $238m in net gains tied to its derivative asset and equity investment in eBay, partially offset by an estimated $75m loss relating to digital assets and associated receivables.

Cash, cash equivalents and marketable securities are expected to total $5.05bn to $5.07bn at quarter-end, down from $8.69bn a year earlier.

As of 1 August 2026, the company held approximately 43.4 million eBay shares, valued at around $4.94bn.

GameStop said it plans to publish full second-quarter results on 8 September 2026.

The forecast follows reports last month that the company was weighing whether to abandon its $55.5bn takeover bid for eBay in favour of a partnership or joint venture arrangement.

CEO Ryan Cohen led the unsolicited, non-binding offer made in May to acquire eBay in a cash-and-stock transaction valued at $55.5bn, or $125 per share.

eBay's board rejected the proposal that same month, describing it as “neither credible nor attractive”.

In its first quarter, GameStop reported a sharp improvement in earnings and operating performance, aided by continued growth in its collectibles division, which contributed to a 14% rise in net sales for the quarter ended 2 May 2026.