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GameStop (GME) – Get the report Shares soared on Wednesday as investors reacted to the video game retailer’s newly appointed board members and cheered on holiday sales results.
Shares of Grapevine, Texas, at last check, climbed 68% to $ 33.45.
Earlier this week, the retailer struck a deal with RC Ventures to place three of the activist New York investor 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.”
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 digitally-focused retailer,” Telsey analyst Joseph Feldman wrote in a Tuesday note, according to Bloomberg.
Cohen is the director of RC Ventures and co-founder of pet supplies specialist Chewy.com, which was purchased 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.
The firm, in a December Securities and Exchange Commission file, expressed its willingness to get 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 holiday shopping season. This figure represented about 34% of total sales.
Year-to-date 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 “unprecedented demand for recently launched game consoles, and although consumer demand far exceeded limited supply over the nine-week period, the company believes these products will drive sales through 2021 with the availability of consoles from our suppliers. improves later in the year. “
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