GameStop’s collectibles business just keeps booming, as “Pokémon” cards continue to fly

“Pokémon” cards and other memorabilia like Labubus and “Magic: The Gathering” cards propelled GameStop’s collectibles business to another huge quarter.

In its first-quarter earnings report, released Tuesday evening, GameStop reported $348.9 million in sales for its collectibles business, outearning every other category (hardware and software) and accounting for 42% of the company’s overall quarterly revenue. (A year earlier, hardware was the biggest contributor with 47% of sales and collectibles made up 29%.)

The collectibles division saw 65% year-over-year sales growth and has now posted double-digit gains for six quarters in a row.

Fueled by card sales, higher revenue and improved margins propelled GameStop to its highest Q1 operating income ever, at $143.3 million.

The retailer has leaned into “Pokémon” cards’ lasting popularity, launching “Power Packs” last year. Recently, GameStop opened up a higher-tier option for customers to spend up to $5,000 to “rip” a digital pack that contains a random PSA-graded card worth, per the company’s site, $5,000 on average. The potential value, depending on what card a customer pulls, eclipses $69,000, according to the company.

Per Kotaku, customers who receive one of those cards can choose to ship it, sell it online in GameStop’s marketplace, or store it in a climate-controlled facility in Delaware.

Professional Sports Authenticator, or PSA, grading is a form of appraisal that began with sports cards but has recently been dominated by “Pokémon.” That business has itself become overwhelmed by GameStop’s collectibles, and PSA this month paused lower-tier grading levels (including those made through its partnership with GameStop) for up to six months, The New York Times reported.