04:55 PM EDT, 09/10/2024 (MT Newswires) -- GameStop ( GME ) late Tuesday swung to fiscal second-quarter earnings year-over-year while the video game retailer's revenue declined.

The company reported adjusted earnings of $0.01 for the three months through Aug. 3, compared with a $0.03 loss the year earlier. Revenue decreased to $798.3 million from $1.16 billion.

Sales from hardware and accessories fell to $451.2 million in the second quarter from $597 million last year.

GameStop's ( GME ) software revenue, which includes sales from video game, digital and personal computer entertainment software, dropped to $207.7 million from $397 million. Collectibles declined to $139.4 million from $169.8 million.

Wedbush Securities said Friday that it had forecast GameStop ( GME ) sales at $900 million for the quarter, which would have reflected a 23% year-over-year plunge. The company continues to face headwinds such as a mix shift toward digital sales from physical and an ongoing weakness in the hardware segment as streaming services proliferate, Wedbush analysts including Michael Pachter wrote at the time.

There's a "total lack of any strategy to enter new categories with growth potential," the analysts said Friday.

GameStop ( GME ) said Tuesday it will not hold a conference call to discuss the results.

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