GameStop, the video game vendor trying to pull itself off it was digital sales, has appointed a new chief executive and chief financial officer who have worked at Amazon, continuing his foray into the executive ranks of the e-commerce group.
The company, whose shares have been at the center of a social media-fueled business craze, said Wednesday that Matt Furlong will lead the company by the end of the month.
Furlong oversaw Australia’s operations on Amazon and was a technical advisor to the North American head of e-commerce company’s consumer activities in North America.
GameStop has also appointed Mike Recupero, a 17-year veteran of Amazon, to be its chief financial officer.
The Texas-based retailer had announced in April that current Chief George Sherman would get off at the end of July, part of a wider bag aimed at accelerating its push into ecommerce and reversing an annual decline in sales.
Ryan Cohen, GameStop’s largest shareholder and co-founder of Chewy.com, was elected president of the company Wednesday, having first been tapped to lead his digital efforts.
Cohen’s arrival on the board in January helped spark enthusiasm among today’s traders who have taken the stock to its all-time highs.
Earlier this year, GameStop appointed several other executives who had spent time on Amazon. Jenna Owens, former CEO of Amazon and Google, has been named its chief executive officer. He also brought in Matt Francis as his first head of technology and Elliott Wilke as his head of growth.
GameStop shares have risen 1,500 percent so far this year at the end of Wednesday, as meme stock mania has returned in recent weeks, after apparently falling from its peak in January and February. .
However, the stock fell 12 percent in trading after hours. Alongside the appointments, the company disclosed that it had received a request for documents from the Securities and Exchange Commission in connection with an “investigation into trading activities in our securities and the securities of other companies”.
He said he intends to cooperate fully with the SEC and does not expect the investigation to have a negative impact on society.
In another regulatory document, he added: “We have not experienced any material changes in our financial situation or results of operations that would explain such price volatility or trading volumes. [during the stock rally this year]. “
GameStop took advantage of the excitement for its shares in April by raising $ 551 million through the sale of $ 3.5 million shares to help fund its e-commerce drive.
It announced a new “to market” offer of up to 5 million shares on Wednesday, saying it will also use a portion of the proceeds to invest in growth initiatives.
GameStop is the second stock meme to tap into capital markets in recent days. The AMC movie chain also cashed in on the latest run in its share price, announcing two stock sale last week.
GameStop’s announcements, Wednesday, also include its latest quarterly results, showing that net sales rose 25 percent year-over-year to $ 1.28 billion in the three months to early May. The jump reflected how last year’s quarter was hit by store closures due to the coronavirus pandemic. GameStop reported a quarterly loss of $ 66.8m, compared to a loss of $ 165.7m a year ago.
The company said trends in the current quarter “continue to reflect momentum,” with May sales up about 27 percent from last year.
Cohen said the company would avoid presenting details of its turnround plan, but told shareholders to “tie it up.”
“We have a lot of work ahead of us and it will take time,” he said, according to a transcript of his remarks posted on Reddit. “We try to do something that no one in the sales space has ever done, but we believe we put the right pieces in place and we have clear goals: to please customers and drive shareholder value in the long run.”