Traders work on the trading floor at the New York Stock Exchange (NYSE) below GameStop signage in New York, August 8, 2022.
Andrew Kelly | Reuters
GameStop fired its CEO Matthew Furlong and appointed its board chairman Ryan Cohen as executive chairman effective immediately, the company said Wednesday.
Shares of GameStop dropped more than 20% in extended trading after the video game retailer announced the termination.
The company didn’t provide a reason for the firing. It said Cohen will be in charge of capital allocation and overseeing management.
In a cryptic tweet posted about a half an hour after Furlong’s firing was announced, Cohen wrote: “Not for long.”
The activist investor and Chewy founder is known for saying very little publicly and making vague statements online.
The decision to part ways with Furlong comes just months after GameStop reported its first quarterly profit in two years while he was at the helm.
A GameStop store operates in a strip mall on March 16, 2023 in Chicago, Illinois.
Scott Olson | Getty Images
The announcement coincided with GameStop’s fiscal first quarter earnings release. In the three months that ended April 29, GameStop reported revenue of $1.24 billion, down from $1.38 billion in the year-ago period. It reported a net loss of $50.5 million, or a loss of 17 cents per share, compared to a loss of $157.9 million, or 52 cents a share, a year earlier.
The company incurred $14.5 million in transition costs related to its restructuring efforts in Europe. It noted it will take more transition charges in the current quarter.
GameStop has improved its margins by dramatically slashing costs. Selling, general and administrative expenses came in at $345.7 million for the quarter, down from $452.2 million in the year-ago period.
In a news release, the company said it would not hold a conference call to discuss the quarter’s earnings.
This is breaking news. Please check back for updates.
Source: https://www.cnbc.com/2023/06/07/gamestop-fires-ceo-names-ryan-cohen-executive-chairman.html