GameStop, the video game retailer whose shares have been the subject of a day-trading frenzy this year, on Tuesday recorded its first quarterly increase in same-store sales in two years and installed a former Amazon executive to a managerial position.
Both of these developments have given courage to an army of supporters who say the company can seize the opportunity to switch to e-commerce – even as hedge funds and other investors say the company’s stock increase has increased tenfold. this year has been detached from reality.
GameStop’s comparable sales were up 6.5 percent year-over-year in the three months to the end of January, compared to a 24.6 percent drop in the third quarter, driven by an increase in sales. online income during the holiday period.
E-commerce sales rose 175%, accounting for 34% of net sales in the fourth quarter from 12% a year earlier.
The retailer has named former Amazon and Google executive Jenna Owens as the new COO, as part of a larger reshuffle of its management team as she has sought to stem a decline in sales for years .
The company has previously hired Ryan Cohen, its largest shareholder and co-founder of Chewy.com, to lead an expansion of its e-commerce business.
Optimism about the turnaround effort among followers of the Reddit WallStreetBets bulletin board helped spark the big rally in GameStop’s actions earlier this year, culminating in a short squeeze that cost hedge funds billions of dollars and became the subject of Congress auditions.
Yet the latest quarterly results show that a company continues to retract. Net sales fell to $ 2.12 billion from $ 2.19 billion in the previous year quarter, affected by coronavirus-related store closings in Europe and a 12% reduction in store base from GameStop.
GameStop’s sales have plummeted in recent years as it struggled to adjust as digital downloads and free online games have taken over the gaming world and mall traffic has slowed as retailers consumers were connecting.
George Sherman, chief executive, said the company was “on a good start” this year, citing a 23% increase in same-store sales in February amid strong global demand for gaming hardware.
“We are excited about the opportunities available to us as we begin to prioritize long-term digital and e-commerce initiatives while continuing to run our core business during this emerging console cycle,” he said. -he declares.
“In 2021, we will focus on improving our e-commerce and customer experience, increasing our delivery speed, providing superior customer service and expanding our catalog.
GameStop shares hit a record $ 483 on Reddit trading frenzy in January and, before the results were released on Tuesday, was up 865 percent since the start of 2021. In after-hours trading, they fell 15 percent.
Earlier today, GameStop announced that its chief customer officer, Frank Hamlin, will be stepping down at the end of March, the second departure of a senior executive this month. The company previously announced that CFO Jim Bell would resign.
GameStop said it continues to “actively seek out” senior talent with experience in e-commerce, retail and technology to help transform the business.