GameStop (GME) – Get report shares soared on Wednesday as investors reacted to the videogame retailer’s recently appointed board members and encouraging results for holiday sales.
Shares of Grapevine, Texas, eventually rose 68% to $ 33.45.
Earlier this week, the dealer reached an agreement with RC Ventures to place three of the New York activist nominees – Alan Attal, Ryan Cohen and Jim Grube – on the board.
A statement from GameStop said the three executives “have deep expertise 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 (CHWY) – Get report and the vision to “make GameStop a more digitally focused retailer,” Telsey analyst Joseph Feldman wrote in a Tuesday letter, according to Bloomberg.
Cohen is the manager of RC Ventures and co-founder of specialist Chewy.com for pets, which was bought by PetSmart in 2017 for $ 3.35 billion.
In November, RC Ventures called on the company to conduct a strategic review of its business and focus on digital sales.
The firm filed a December submission with the Securities and Exchange Commission to be more involved with the company “to deliver the best results for all shareholders.”
The company also reported a quadrupling of e-commerce sales during the nine-week holiday season. The figure accounted for about 34% of total sales.
GameStop has so far surpassed $ 1.35 billion in e-commerce sales, exceeding the company’s $ 1 billion target. Comparable sales increased by 4.8%
GameStop said in a statement that there has been an unprecedented demand for recently launched game consoles, and although consumer demand far exceeds the limited supply in the nine-week period, the products believe that sales will increase until 2021, as the availability of console is available from our suppliers. improved later in the year. ‘