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GameStop Shares Rally On Holiday Sales, Board Reshuffle

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GameStop Shares Rally On Holiday Sales, Board Reshuffle

Gaming retailer GameStop Corp. (NYSE: GME) saw a rally Monday on its holiday sales and changes to the Board of Directors.

Holiday Sales: The nine-week holiday season saw revenue of $1.77 billion for GameStop, down 3.1% year-over-year. Same-store sales were up 4.8% over the nine-week period coming at the hands of the store count lowered by 11%.

The big story for GameStop in the nine-week period was the continued strength of e-commerce sales with 309% year-over-year growth. E-commerce sales made up 34% of the company’s total in the nine-month period.

GameStop saw “unprecedented demand” for new consoles from Sony Corp. (NYSE: SNE) and Microsoft Corp. (NASDAQ: MSFT). The company saw greater demand than supply and believes the consoles will drive sales in 2021.

Related Link: GameStop Reports Mixed Q3 Earnings, More Store Closures

Board of Directors Changes: GameStop announced the addition of three team members to its Board of Directors who all have e-commerce experience.

Alan Attal, Ryan Cohen and Jim Grube will be added to the Board of Directors, which will temporarily expand from 10 to 13 members.

Cohen is a large shareholder in GameStop with his RC Ventures. Attal, Cohen and Grube all have experience in e-commerce with all three working for Chewy Inc. (NYSE: CHWY), the company co-founded by Cohen.

The board will be reduced to nine members at the 2021 annual meeting with four board members seeking not to run for re-election.

What’s Next: GameStop said it will report fourth quarter and full-year earnings in late March. The company has suspended guidance.

Shares of GameStop were up 13% to $19.94 on Monday.

 

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