What impacted GameStop's gross profit decline in Q1 2025?

GameStop's gross profit decline in Q1 2025 was not impacted by its Bitcoin reserve plan, but rather by a decrease in sales across all major product categories, including hardware, software, and collectibles. Despite the decline in gross profit, the gross profit margin increased to 29.1% from 24.5% due to a shift towards higher-margin products. The company's cost reduction efforts, as reflected by the decrease in selling, general, and administrative expenses, also contributed to the overall financial performance. However, the decline in sales remained a significant factor leading to the gross profit decline.