By Sarah E. Needleman

$GameStop(GME.US)$ narrowed its losses and posted sales growth of roughly 26% in the latest quarter, as the videogame retailer seeks to reset its business after an overhaul of its leadership team.

While the fiscal second quarter is typically slowest for GameStop's sales, the company on Wednesday reported growth across its hardware, software and collectibles categories.

In June, GameStop named former Amazon.com Inc. veteran Matt Furlong as its chief executive officer, alongside fellow Amazon veteran Mike Recupero as finance chief. Shareholders also voted Chewy Inc. co-founder Ryan Cohen as chairman, cementing his oversight of the company following a monthslong, social-media-fueled trading frenzy that helped its stock price skyrocket from the high teens at the start of the year to Wednesday's close of $198.80.

The roller-coaster ride continued for GameStop investors after the earnings report Wednesday, with shares falling as much as 11% in extended trading. The company's quarterly sales of $1.18 billion came in slightly higher than analysts' forecasts.

Mr. Furlong led GameStop's earnings call Wednesday, his first time speaking publicly since becoming CEO. He didn't take questions from analysts and said the company wouldn't provide guidance, as has been the case in recent past quarters.

We now have unified leadership. We are focused on positioning GameStop to scale."

-Mr. Furlong said on the call.

Mr. Cohen didn't participate in the call. He last spoke at GameStop's annual shareholder meeting in June over a live video stream, during which he reiterated plans to make the retailer more technology-focused. He didn't disclose details on strategy, saying that doing so would put it at a competitive disadvantage. He also thanked retail, or nonprofessional, investors for their support.

Grapevine, Texas-based GameStop has reported annual losses for three consecutive years. It has faced high CEO turnover and a steady increase in videogame enthusiasts shifting to buying downloads of console and computer games from digital storefronts, rather than the hard copies that the retailer specializes in selling.

The pandemic accelerated that trend and forced the company to close hundreds of stores temporarily, in some cases making those closures permanent. Adding to its challenges, GameStop doesn't sell mobile games, a category that this year is expected to generate more annual global revenue than console and computer games combined, according to estimates from industry tracker Newzoo BV.

Since Mr. Cohen became a major shareholder in GameStop last year, he has pushed to improve the company's e-commerce business by enhancing customer support, adding new products for sale and opening more distribution facilities to speed up deliveries. Through a series of strategic moves, he overhauled GameStop's executive team and board to his liking, pushing out people with bricks-and-mortar backgrounds and replacing them with people mainly from large tech companies, such as Messrs. Furlong and Recupero.

Next-generation videogame consoles from Microsoft Corp. and Sony Group Corp. boosted sales for GameStop in recent quarters, though demand for the machines has often exceeded retailers' supplies because of the global chip shortage.

In the period that ended July 31, GameStop posted a loss of $61.6 million, or 85 cents a share. Its year-ago loss was $111.3 million.

GameStop's results reflect a broader economic recovery and so they don't stand out, said David Trainer, CEO of New Constructs LLC, an independent investment research firm based in the Nashville, Tenn., area. "They're still losing money," he said. "If they won't turn a profit in this kind of environment, when will they?"

Write to Sarah E. Needleman at sarah.needleman@wsj.com