Video game retailer GameStop Corporation
What Happened: GameStop reported first-quarter net sales of $1.237 billion, which were down from $1.378 billion year-over-year. Net sales missed an estimate of $1.36 billion, according to data from Benzinga Pro.
The company reported a net loss of $50.5 million in the first quarter. Earnings per share were negative 14 cents per share in the first quarter, which missed a Street consensus estimate of a loss of 12 cents per share.
GameStop cited restructuring costs of $14.5 million related to its European operations. More transition charges are expected in the second quarter.
The company ended the first quarter with $1.31 billion in cash and cash equivalents. The company had no long-term debt outside of an unsecured term loan related to the response of the French government to COVID-19.
What's Next: GameStop announced after market close that Ryan Cohen has been elected executive chairman of the company. Cohen's duties will include "capital allocation and overseeing management."
Cohen had the previous title of Chairman of GameStop. The activist investor took a 9% stake in the company that was disclosed in August 2020. The investor later increased the stake to 13% in late 2020.
Cohen has been a vocal supporter of GameStop since investing in the company and is was also seen as a leader for retail traders in their battle against hedge funds and short sellers betting on Gamestop's demise.
The company's former CEO Matt Furlong resigned from the company on June 5, 2023. GameStop noted the resignation did not come from any disagreement with the company.
The Board of Directors for the company has been reduced to five members as a result of Furlong's resignation.
The company also announced the promotion of Mark Robinson to General Manager. Robinson previously served as the company's Vice President, General Counsel of the company since January 2022; Robinson will resume his General Counsel role alongside the General Manager title.
Mr. Robinson, 44 years old, has served as the Vice President, General Counsel of the Company since January 2022, and in various other roles at the Company since August 2015.
GameStop said it would not host a first-quarter conference call on Wednesday.
GME Price Action: GameStop shares are down 20.76% to $20.69 in after-hours trading Wednesday.
