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GameStop, a video game retailer trying to pull itself in The era of digital sales, Appointed a new CEO and treasurer who had worked for Amazon, and continued to conduct raids on the top management of the e-commerce group.
The company’s stock has been at the center of a trading frenzy driven by social media, and the company said on Wednesday that Matt Furlong will start leading the company later this month.
Furlong was previously responsible for overseeing Amazon’s Australian business and served as a technical consultant to the head of the e-commerce company’s North American consumer business.
GameStop also appointed Mike Recupero, a 17-year veteran of Amazon, as its chief financial officer.
The Texas-based retailer announced in April that current CEO George Sherman will Step down By the end of July, this was part of a broader reorganization aimed at accelerating its foray into e-commerce and reversing the decline in sales for several years.
Ryan Cohen, GameStop’s largest shareholder and the co-founder of Chewy.com, was elected chair the company on Wednesday, having earlier been tapped to lead its digital efforts.
Cohen joined the board of directors in January, stimulating the enthusiasm of day traders and pushing the stock to a record high.
Earlier this year, GameStop appointed several other executives who had previously worked at Amazon. Former Amazon and Google executives Jenna Owens was appointed chief operating officer. It also hired Matt Francis as its first chief technology officer and appointed Elliott Wilke as chief growth officer.
So far this year, GameStop’s stock price has risen 1,500% at the close of trading on Wednesday, as the meme stock frenzy has made a comeback after it seems to have subsided from the peaks in January and February in recent weeks.
However, the stock fell 12% in after-hours trading. In addition to these appointments, the company also revealed that it has received a document request from the US Securities and Exchange Commission to “investigate the trading activities of our securities and the securities of other companies.”
It said it intends to cooperate fully with the US Securities and Exchange Commission and does not expect the investigation to have an adverse effect on the company.
In another regulatory document, it added: “There has not been any major change in our financial situation or business performance that can explain this price fluctuation or transaction volume. [during the stock rally this year]. “
GameStop raised $551 million by selling 3.5 million shares to fund its e-commerce development, thereby capitalizing on the excitement of its shares in April.
It announced a new “market” offering on Wednesday, with a maximum of 5 million shares, and said it will once again use part of the proceeds to invest in growth plans.
GameStop is the second memetic stock to enter the capital market in recent days.The theater chain AMC also profited from the latest rise in its share price and announced two Stock sale last week.
GameStop’s announcement on Wednesday also included its latest quarterly results, showing that net sales increased by 25% year-on-year to US$1.28 billion in the three months ending in early May. This jump reflects the impact of store closures due to the coronavirus pandemic during the same period last year. GameStop posted a quarterly loss of $66.8 million, compared with $165.7 million a year ago.
The company stated that the trend this quarter “continues to reflect momentum” as sales in May increased by approximately 27% from last year.
Cohen said the company would not disclose the details of its turnover plan for the time being, but told shareholders to “fasten their seat belts.”
According to the record of his remarks on Reddit, he said: “We have a lot of work ahead of us, and it takes time.” “We are trying to do something that no one has done in the retail field, but we believe we are putting the right Part of it is put in place, we have a clear goal: to please customers and drive shareholder value in the long term.
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