Texas-based GameStop Corp. revealed the results of its nine-week holiday season and an update to its board of directors.
Following a dismal 30% drop in Q3, the company says its total sales declined 3.1% during the holiday season ending Jan. 2. The bright side is a 4.8% increase in comparable-store sales and a 309% increase in digital sales versus the same period last year.
“GameStop maintained its status as the omnichannel destination for gaming and entertainment with unprecedented demand for the new gaming consoles and a significant increase in e-commerce sales,” says GameStop CEO George Sherman. “Demand for the new generation of consoles remains very strong, and as a result, we anticipate the consumer’s excitement for the new console technology will benefit us going forward well through 2021. Overall, we remain confident in both the positive growth aspects for 2021 driven by our strategy to add new and exciting product revenue streams across all things games and entertainment and the strong demand for the new generation for console-based video game products.”
GameStop continues to suspend future guidance and plans to report Q4 and full-year sales in March.
Additionally, the company finally gave in to some pressure that has been leveraged by Chewy founder Ryan Cohen whose RC Ventures has taken an increasingly large position in the company over the past year. GameStop is continuing the committee refreshment that it began last March with the addition of three new members with e-commerce experience: Alan Attal, Ryan Cohen, and Jim Grube. With those additions, the board will temporarily expand to 13 members.
“We are excited to bring our customer-obsessed mindset and technology experience to GameStop and its strategic assets,” says Cohen. “We believe the company can enhance stockholder value by expanding the ways in which it delights customers and by becoming the ultimate destination for gamers. Alan, Jim, and I are committed to working alongside our fellow directors and the management team to continue to transform GameStop. In addition, we intend to bring additional ownership perspectives to the boardroom.”
Lizabeth Dunn, Raul Fernandez, James K. Symancyk, and Kathy Vrabeck have been informed that they will not stand for re-election and the board will shrink to nine following the company’s Annual Meeting.