GameStop (GME) – Request report Shares skyrocketed Wednesday as investors responded to the video game retailer’s recently appointed board members and the encouraging results of the Christmas sales.
Shares of the Grapevine, Texas company finally climbed 68% to $ 33.45.
Earlier this week, the retailer reached an agreement with RC Ventures to place three nominees from the New York-based activist investor – Alan Attal, Ryan Cohen and Jim Grube – on the board.
A statement from GameStop says 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 (ALL OF THEM) – Request report and vision to “make GameStop a more digitally focused retailer,” Telsey analyst Joseph Feldman wrote in a note on Tuesday, Bloomberg said.
Cohen is the manager of RC Ventures and co-founder of pet store 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 operations and focus on digital sales.
The company expressed its willingness to become more involved with the company in a December filing from the Securities and Exchange Commission “to produce the best results for all shareholders.”
The company also reported a fourfold increase in ecommerce sales during its nine-week Christmas shopping season. The figure accounted for about 34% of total sales.
E-commerce sales to date have exceeded $ 1.35 billion, GameStop said, surpassing the company’s $ 1 billion target. Comparable store sales increased by 4.8%
GameStop said in a statement that it had “seen unprecedented demand for recently launched game consoles, and while consumer demand far exceeded the limited supply over the nine-week period, the company believes these products will continue sales well into 2021. as consoles are available from our suppliers. improves later in the year. “