The company also recently added its first-ever chief technology officer, a new chief operating officer, a new senior vice president of e-commerce and several other executive roles — many of whom come from Amazon and Cohen’s Chewy.
“The Company is continuing to actively pursue senior talent with gaming, retail and technology experience,” the company said in a press release Wednesday.
In addition to the major leadership announcement, GameStop posted mixed earnings results for the three months ended May 1.
Quarterly revenue increased 25% year-over-year to nearly $1.28 billion, beating the $1.16 billion Wall Street analysts had projected. But the company posted a steeper-than-expected net loss of $66.8 million, or $1.01 per diluted share.
The company’s stock tumbled more than 12% in after-hours trading Wednesday. However, that comes after a month when the company’s stock has climbed more than 110% as “meme” stocks again gain attention from investors.
The company then held a quarterly earnings call that lasted around 10 minutes, during which outgoing CEO George Sherman reviewed the company’s financial results from the quarter and did not take questions from analysts. The company also declined to provide annual sales and earnings guidance, although Sherman said during the call that the company’s May sales were up nearly 27% year-over-year.
GameStop also revealed on Wednesday that it received a request from SEC staff last month to provide documents and information for an investigation into the trading of its and other companies’ stocks.
“We are in the process of reviewing the request and producing the requested documents and intend to cooperate fully with the SEC Staff regarding this matter,” the company said in its quarterly filing with the SEC. “This inquiry is not expected to adversely impact us.”
Despite the love it’s gotten from Redditors this year, GameStop still has a long way to go to turn its fortunes around. It is still losing millions, has closed hundreds of stores over the past year and is struggling to keep up with consumers’ preference for downloading games from the internet rather than buying them in-stores.
Its new leadership could help.
Incoming CEO Furlong most recently worked as a “country leader” overseeing Amazon’s Australia business, and he previously served as a technical adviser to the head of Amazon’s North America consumer business, according to GameStop. In a press release, GameStop called him a “veteran e-commerce leader with significant experience implementing growth strategies across global geographies and product categories.” He is set to start at GameStop on June 21.
“[Furlong] is a proven e-commerce leader with a firm understanding of how to delight customers,” Sherman said during the earnings call. “His focus, intensity and work ethic will set the right tone atop the company as we begin shifting to a growth phase.”
Recupero, the new CFO, is a 17-year Amazon veteran who has served as CFO of the North American consumer business and Prime Video. He will start at GameStop on July 12.