Japanese retailer GEO Holdings Corp. reported a steep decline in quarterly profit as gaming-related sales retreated from last year’s strong performance driven by major title releases.
Net income fell 51% to ¥2.83 billion ($18.9 million) in the second quarter, while revenue dropped 7.4% to ¥199.7 billion ($1.33 billion). The Tokyo-based company’s operating profit decreased 26% to ¥5.41 billion ($36.1 million).
The sharp downturn reflects declining sales of new gaming products, which tumbled 40% to ¥44.5 billion ($297 million). This contrasts with last year’s surge fueled by PlayStation 5 console distribution and major game launches.
Despite headwinds in new products, GEO’s reused goods segment showed resilience, growing 11% to ¥87.3 billion ($582 million). The company expanded its presence in the second-hand smartphone market through standalone “GEO mobile” stores and enhanced online sales.
Looking ahead, GEO forecasts full-year profit to decline 45% to ¥6 billion ($40 million) on marginally higher revenue of ¥436 billion ($2.91 billion), suggesting continued pressure on margins as the gaming market normalizes.
