GameStop names Amazon veteran as CEO; sales accelerate

Jun 9, 2021, 1:29 PM | Updated: Jun 10, 2021, 6:15 am

NEW YORK (AP) — GameStop, the video-game retailer whose manic stock movements captivated Wall Street this year, said Wednesday that it’s brought on a pair of Amazon veterans as its new chief executive and chief financial officer to aid in its much anticipated digital turnaround.

Matt Furlong, who most recently oversaw Amazon’s Australia business and spent nine years with the company, will start as CEO on June 21. GameStop also said that Mike Recupero, who most recently was CFO of Amazon’s North American consumer business, will begin as chief financial officer on July 12.

GameStop’s stock has been on a wild rocket ride, soaring more than 1,500% this year as waves of smaller-pocketed investors piled in on hopes that it can transform itself into an e-commerce powerhouse after sales at its brick-and-mortar stores faltered. GameStop said Wednesday that the Securities and Exchange Commission’s staff is conducting an investigation into the trading activity in its stock and shares of other companies. GameStop said it doesn’t expect the inquiry to hurt it.

Investors have pinned much of their hope on Ryan Cohen, a major investor who co-founded Chewy, the online seller of pet supplies.

GameStop said Wednesday that it’s still losing money, posting a net loss of $66.8 million for the three months through May 1. But that’s not as bad as the $165.7 million loss from a year earlier, and its sales of $1.28 billion was stronger than the $1.16 billion that analysts expected. Sales grew 25% even as the company closed some of its stores.

GameStop became the face of the “meme stock” craze early this year, when a fanatical band of smaller-pocketed and novice investors encouraged each other to pile in. That helped trigger a “short squeeze,” which sent the stock flying.

Professional investors had sold much of GameStop’s stock “short,” essentially making bets that would profit if its price were to fall. They were skeptical GameStop had a bright future given the migration of video-game sales toward online channels and away from GameStop’s stores. But after the stock began rising sharply, those short sellers had to buy GameStop shares to get out of their bets, which created a feedback loop further goosing the share price.

The stock set a record closing high of $347.51 in late January, but it sank back below $41 within a few weeks. It’s since climbed again and closed Wednesday at $302.56.

GameStop reaped the benefits of that surge by selling stock earlier this year to raise nearly $552 million. That helped the company end its latest quarter with $770.8 million in cash and restricted cash. GameStop said it plans to use its increased financial strength to accelerate its transformation. It already has eliminated all its long-term debt.

GameStop didn’t provide an earnings forecast and it said it believes sales growth is the best way to measure its performance. The company said sales in May rose about 27% above last year.

GameStop’s stock slipped 7% in trading after the market’s close.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

FILE - Ohio Gov. Mike DeWine, center, and his wife Fran, right, talk with specialist Emily Milosevi...
Associated Press

Army Guard troops risk dismissal as vaccine deadline looms

WASHINGTON (AP) — Up to 40,000 Army National Guard soldiers across the country — or about 13% of the force — have not yet gotten the mandated COVID-19 vaccine, and as the deadline for shots looms, at least 14,000 of them have flatly refused and could be forced out of the service. Guard soldiers have […]
22 hours ago
Karen Sloan said she's a registered Republican who backs abortion rights, Friday, June 24, 2022 in ...
Associated Press

Dems hope to harness outrage, sadness after abortion ruling

YARDLEY, Pa. (AP) — The shock quickly turned to sadness for Victoria Lowe. The 37-year-old lawyer, working outside a cafe in suburban Bucks County, Pennsylvania, said she couldn’t believe the Supreme Court stripped away the constitutional right to abortion that women have had her entire life. She started to cry. “I don’t understand how they […]
22 hours ago
Associated Press

Today in History: June 25, Anne Frank’s diary published

Today in History Today is Saturday, June 25, the 176th day of 2022. There are 189 days left in the year. Today’s Highlight in History: On June 25, 1876, Lt. Col. Colonel George A. Custer and his 7th Cavalry were wiped out by Sioux and Cheyenne Indians in the Battle of the Little Bighorn in […]
22 hours ago
FILE - Chinese President Xi Jinping, left, and Hong Kong's new Chief Executive Carrie Lam attend th...
Associated Press

China’s Xi to visit Hong Kong for handover anniversary

BEIJING (AP) — Chinese leader Xi Jinping will visit Hong Kong to celebrate next week’s 25th anniversary of the former British colony’s return to China following a crackdown on a pro-democracy movement that has inflamed tension with Washington and Europe. Xi will attend an anniversary gathering and the first meeting of the new government of […]
22 hours ago
FILE - Planes sit on the tarmac at the Des Moines International Airport, Monday, June 13, 2022, in ...
Associated Press

Airlines aim to shift blame for flight problems to FAA

DALLAS (AP) — Airlines under scrutiny for widespread flight disruptions are renewing their criticism of the government agency that manages the nation’s airspace, saying that understaffing at the Federal Aviation Administration is “crippling” traffic along the East Coast. Airlines for America, which represents the largest U.S. carriers, said Friday it wants to know FAA’s staffing […]
22 hours ago
FILE - Investigators search for evidences outside Robb Elementary School in Uvalde, Texas, May 25, ...
Associated Press

Graduating Uvalde High School class remembers slain children

UVALDE, Texas (AP) — Almost 300 high school seniors received their diplomas Friday in Uvalde in the shadow of the massacre of 19 elementary school students and two teachers one month earlier. The 288 red-gowned Uvalde High School seniors sat in 100-degree heat at the school stadium on the one-month anniversary of the mass shootings. […]
22 hours ago

Sponsored Articles

...

Most plumbing problems can be fixed with regular maintenance

Instead of waiting for a problem to happen, experts suggest getting a head start on your plumbing maintenance.
...
CANVAS ANNUITY

Best retirement savings rates hit 4.30%

Maximize your retirement savings with guaranteed fixed rates up to 4.30%. Did you know there is a financial product that can give you great interest rates as you build your retirement savings and provide you with a paycheck for life once you retire? It might sound too good to be true but it is not; this product is called an annuity.
...
Carla Berg, MHS, Deputy Director, Public Health Services, Arizona Department of Health Services

Update your child’s vaccines before kindergarten

So, your little one starts kindergarten soon. How exciting! You still have a few months before the school year starts, so now’s the time to make sure students-to-be have the vaccines needed to stay safe as they head into a new chapter of life.
GameStop names Amazon veteran as CEO; sales accelerate