GameStop's Results Don't Deserve Celebration

GameStop's Results Don't Deserve Celebration

A surprise jump in comparable sales and a big earnings beat sent shares of video game retailer GameStop (NYSE: GME) higher on Wednesday, but below the surface all is not right with the company. There was more bad than good in GameStop's third-quarter report, and the existential threat facing the retailer hasn't diminished.

GameStop managed to report comparable sales growth of 1.9% in the third quarter, pushing its revenue slightly above analyst estimates. The Nintendo (NASDAQOTH: NTDOY) Switch was the main reason, driving new hardware sales up 8.8% year over year. The Switch also helped increase new software sales, which jumped by 5.4%.

The Nintendo Switch game console. Image source: Nintendo.

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Source: Fool.com