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GameStop, a video game store the era of digital sales, Has appointed a new CEO and chief financial officer who has worked at Amazon, following on from his attempt at the e-commerce team’s executive positions.
The company, whose shares have been at the center of a social media-fueled trading craze, said on Wednesday that Matt Furlong would lead the company from this month.
Furlong previously oversaw Amazon’s Australian business and was a technical advisor to the ecommerce company’s head of North American consumer business.
GameStop also named Mike Recupero, a 17-year veteran of Amazon, as its chief financial officer.
The Texas trader announced in April that he would be replaced by current leader George Sherman resign at the end of July, part of a broader shake-up aimed at accelerating the momentum for e-commerce and reversing the one-year decline in sales.
Ryan Cohen, GameStop’s largest shareholder and founder of Chewy.com, was chosen to head the company on Wednesday, having previously been selected to direct his digital efforts.
When Cohen came to the commission in January, he helped spark excitement among the day’s traders who took the largest stock ever.
Earlier this year, GameStop named several other directors who had previously served on Amazon. Jenna Owens, a former executive at Amazon and Google, was named head of operations. He also brought in Matt Francis as chief technology officer and Elliott Wilke as chief growth officer.
GameStop shares rose 1,500 percent this year at the close of Wednesday, as meme stock mania returned in recent weeks, apparently after falling from its peak in January and February.
Shares fell 12 percent in overtime trading, however. Along with the appointments, the company reported that the Securities and Exchange Commission had received a request for documents related to “an investigation into the trading activity of our securities and the trading activity of the securities of other companies”.
He said he intends to cooperate fully with the SEC and does not expect the consultation to have a detrimental effect on the company.
In another regulatory filing, he added: “We have not had any changes in our financial condition or results of operations that would explain price volatility or trading volume. [during the stock rally this year]”.
GameStop took advantage of its excitement over stocks in April by raising $ 551 million by selling 3.5 million shares to help fund its ecommerce boost.
He announced on Wednesday that he would use the new 5 million share offer in the “market,” and said he would use part of the re-earned share to invest in growth initiatives.
GameStop is the second meme stock to hit the capital markets in recent days. The AMC film chain has also secured the final share price price, the two have announced stock sale in the first week.
GameStop’s announcements on Wednesday also included quarter-end results, with net sales up 25 percent year-on-year to $ 1.28 billion in the first three months of May. The leap reflected how a quarter of a year ago store closures were affected by the coronavirus pandemic. GameStop had a quarterly loss of $ 66.8 million, compared to a loss of $ 165.7 million 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 has yet to avoid putting details of its return plan, but told shareholders to give it “strings”.
“We have a lot of work ahead of us and it will take time,” he said, according to a transcript of notes posted on Reddit. “We’re trying to do something that no one else has done at the store, but we think we’re putting in the right pieces and we have clear goals: to enjoy customers and boost shareholder value in the long run.”
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