GameStop (GME) – Get the report shares rose on Wednesday, while investors reacted to members of the video game store’s board of directors, encouraging sales results.
Shares of Grapevine, Texas, at the last check, rose 68% to $ 33.45.
Earlier this week, the retailer reached an agreement with RC Ventures to place three of the nominees of New York activist investors – Alan Attal, Ryan Cohen and Jim Grube – on the board.
A statement from GameStop says the three directors have “deep experience in e-commerce, online marketing, finance and strategic planning.”
The addition of Cohen and the other new directors is positive, given their success at Chewy. (ALL) – Get the report and the vision to “make GameStop a more digital retailer,” Telsey analyst Joseph Feldman wrote in a note Tuesday, according to Bloomberg.
Cohen is the manager of RC Ventures and co-founder of the pet supply specialist Chewy.com, which was acquired by PetSmart in 2017 for $ 3.35 billion.
In November, RC Ventures asked the company to conduct a strategic analysis of its business and focus on digital sales.
In a December statement from the Securities and Exchange Commission, the company expressed a desire to become more involved in the company “to produce the best results for all shareholders”.
The company also reported a quadrupling of e-commerce sales during the nine-week shopping season. The figure accounted for about 34% of total sales.
So far, e-commerce sales have exceeded $ 1.35 billion, GameStop said, exceeding the company’s $ 1 billion target. Comparable store sales increased 4.8%
GameStop said in a statement that it saw “an unprecedented demand for recently launched game consoles and, while consumer demand far exceeded the limited supply in the nine weeks, the company believes that these products will drive sales by 2021, as the availability of the console from our suppliers improves later in the year. “