GameStop Terminates CEO Matt Furlong
GameStop Reorganizes Management Team
GameStop announced on Wednesday that it had terminated its CEO, Matt Furlong, and that Ryan Cohen, co-founder of Chewy, would transition from chairman to executive chairman. In a press release, the company stated that Furlong’s resignation from the board of directors did not stem from any dispute with the company regarding its policies or practices. In other changes, the retailer named Mark Robinson as principal executive officer and general manager. Robinson will also continue to serve as the company’s General Counsel and Secretary.
As part of the reorganization, Cohen will lead capital allocation efforts, evaluate potential investments and acquisitions, and oversee the managers of GameStop’s holdings. He will report directly to Robinson. GameStop hopes this management reshuffling will put it on a growth trajectory.
GameStop’s Q1 Results and Stock Price Performance
In its first-quarter financial results released on Wednesday, GameStop’s net sales totaled $1.2 billion, while its net loss was $50.5 million for the three-month period. Net sales dropped by 10% compared to the same period in 2022, but the net loss declined by 68% year-over-year. The stock price for GameStop closed around $26.11, subsequently decreasing by 19%.
Cohen’s RC Ventures controlled almost 12% of common GameStop shares as of late April.
Conclusion
As GameStop implements its new management structure led by Ryan Cohen, the company hopes to achieve growth, cemented by its first-quarter financial results. Investors will certainly have their eyes on the company’s future performance, while Cohen’s success with Chewy provides confidence in his ability to lead GameStop.