Shares of GameStop (GME) are down 20% after the video game retailer issued a disappointing earnings report and fired chief executive officer (CEO) Matthew Furlong.
The company also announced that it has appointed board chairman Ryan Cohen to be its executive chairman effective immediately.
Cohen first took a stake in GameStop during 2020, and in January 2021 he was named to the retailer’s board of directors. His investment firm, RC Ventures, currently owns 12% of GameStop’s outstanding shares.
Former CEO Furlong has resigned from the company’s board of directors, leaving it with just five members currently.
For the three months ended April 29, GameStop reported revenue of $1.24 billion U.S., down 10% from $1.38 billion a year earlier.
The company’s net loss narrowed to $50.5 million, or -$0.17 per share, from $157.9 million, or the equivalent of -$0.52 a share, a year earlier.
GameStop’s sales in the U.S., Canada and Australia fell by 16.4%, 18.5% and 8.9% respectively from the year-earlier period.
The company attributed the drop in sales to currency fluctuations, fewer gaming titles, and soft sales in its collectible products.
GameStop did not hold a conference call to discuss its quarterly earnings or the firing of Furlong.
Before today’s decline, GameStop’s stock had fallen 25% over the past 12 months to trade at $26.11 U.S. per share.
