GameStop (GME) — Get a report Stocks rose on Wednesday as investors interacted with recently appointed video game retailer board members encouraging the holiday sales results.
Shares in Grapevine, Texas, last check up 68% to $ 33.45.
Earlier this week, the retailer reached an agreement with RC Ventures to place three nominees from the activist New York investor — Alan Atal, Ryan Cohen and Jim Group — on the board of directors.
A statement from GameStop said the three executives had «deep experience in e-commerce, internet marketing, finance and strategic planning.»
The addition of Cohen and the other new directors is positive due to their success at Chewy (All) — Get a report Telsey’s analyst Joseph Feldman wrote in a note Tuesday, according to Bloomberg, the vision to «make GameStop a more technology-focused retail company.»
Cohen is the director of RC Ventures and the co-founder of pet supplies specialist Chewy.com, which was bought by PetSmart in 2017 for $ 3.35 billion.
In November, RC Ventures urged the company to conduct a strategic review of its business and focus on digital sales.
In the December Securities and Exchange Commission file, the company expressed its willingness to engage more closely with the company «to achieve the best results for all shareholders.»
The company also reported that e-commerce sales quadrupled during the nine-week shopping season. The number accounts for approximately 34% of all sales.
GameStop said e-commerce sales have exceeded $ 1.35 billion year-to-date, beating the company’s $ 1 billion target. Similar store sales increased 4.8%
GameStop said in a statement that it has seen «unprecedented demand for recently launched gaming consoles, and while consumer demand has exceeded the restricted supply in a nine-week period, the company believes these products will drive sales well into 2021 with the console available from our suppliers.» Is getting better later in the year. «
