By Elias Schisgall

GameStop reported a higher profit in the first quarter and said its board approved a $2 billion stock buyback authorization.

The videogame retailer on Tuesday reported a profit of $389.6 million, or 66 cents a share, compared with a profit of $44.8 million, or 9 cents a share, a year earlier.

Stripping out certain one-time items, GameStop reported adjusted earnings of 30 cents a share.

Sales rose to $835.3 million, up from $732.4 million a year prior. Sales growth was driven by collectibles, the company said.

GameStop also said its board approved a $2 billion stock buyback authorization. The authorization is effective for three years and replaces a previous authorization from March 2019.

Shares rose 8.2% to $22.63 in after-hours trading on Tuesday. The stock closed down 2% at $20.92, up 4.2% this year.

The results come after GameStop Chief Executive Officer Ryan Cohen announced a bid to take over eBay for $56 billion. EBay said last month that its board and independent advisers reviewed the proposal and decided to reject it, citing uncertainty around financing and risks around leverage and leadership of the combined company.

GameStop later disclosed in a filing that it controls 6.55% of eBay's outstanding shares, up from around 5%.

Gamestop recently asked its shareholders to approve an increase in its share count and a 100% performance-based option award for Cohen.

Write to Elias Schisgall at elias.schisgall@wsj.com

(END) Dow Jones Newswires

June 02, 2026 16:59 ET (20:59 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.