GRAPEVINE, Texas — GameStop Corp. shares rose more than 4 percent Monday after the video-game retailer posted preliminary second-quarter results showing higher profit on lower sales and revised a large convertible-note exchange to pay more in cash and fewer new shares.

The stock traded around $18.64, up 77 cents, or about 4.3 percent, by late morning in New York. The move followed two company releases issued before the open: unaudited figures for the 13 weeks ended Aug. 1 and an amendment to agreements covering about $1.4 billion of zero-coupon convertible notes.

GameStop said it expects net sales of $780 million to $800 million, down from $972.2 million a year earlier. The company attributed the drop mainly to last year's Nintendo Switch 2 launch, planned store closures and the sale of its France business. Operating income is projected at $150 million to $170 million, compared with $66.4 million a year ago. Net income is expected at $290 million to $310 million, up from $168.6 million.

Those profit figures include about $238 million of net gains tied to an eBay Inc. derivative and equity stake, partly offset by a loss of roughly $75 million on digital assets and related receivables. During the quarter GameStop converted a........

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