GameStop Shares Rally On Holiday Sales, Board Reshuffle

Gaming retailer GameStop Corp. 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. SNE and Microsoft Corp. 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. 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.

Posted In: PlayStation 5RC VenturesRyan CohenXbox Series XNewsRetail SalesSmall CapManagement

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