Is a GameStop turnaround actually in progress?
The embattled retailer of video games, accessories, toys, and collectibles has had a rough go in recent years, but following a refresh of its board of directors and a market boom thanks to its “meme stock” status, things are looking up. The company surprised investors by crushing sales estimates in the first quarter. Net sales at GameStop increased 25.1% to $1.277 billion versus $1.021 billion during the same period last year. The increase came despite a 12% reduction in stores over the past year and continued pandemic-related closures across Europe.
Additionally, the company revealed that it’s tapped a pair of former Amazon executives to serve as CEO and CFO beginning this summer.
Matt Furlong steps into the role of CEO beginning June 21. A former Proctor & Gamble exec, Furlong most recently capped a nine-year run at Amazon as a country leader overseeing the e-commerce giant’s business in Australia. He previously served as technical advisor to the head of Amazon’s North America consumer business.
Mike Recupero starts his new role as chief financial officer beginning July 12. Recupero spent more than 17 years at Amazon, most recently as CFO for its North American consumer business. He previously served as CFO of Amazon Prime Video, in addition to other roles.
Unsurprisingly, RC Ventures’ Ryan Cohen has been named chairman of the GameStop board of directors but the continued board refresh has not been without its surprises. Recently, eight directors, including former Nintendo of America president Reggie Fils-Aime, former Walmart U.S. CEO William “Bill” Simon, and PetSmart president and CEO James “JK” Symancyk were said to departing. Fils-Aime, Simon, and Symancyk just joined GameStop last year.