GameStop (GME) – Get report shares rose sharply on Wednesday as investors reacted to the video game retailer’s recently named board members and encouraged holiday sale results.
Shares of Grapevine, Texas, eventually rose 68% to $ 33.45.
Earlier this week, the retailer entered into an agreement with RC Ventures to place three of the New York activist 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.”
The addition of Cohen and the other new directors is positive given their success at Chewy (ALL) – Get report and vision of “making GameStop a more digitally focused retailer,” Telsey analyst Joseph Feldman wrote in a Tuesday quota, according to Bloomberg.
Cohen is the leader of RC Ventures and co-founder of pet supply specialist Chewy.com, which was acquired by PetSmart in 2017 for $ 3.35 billion.
In November, RC Ventures encouraged the company to conduct a strategic review of its business and focus on digital sales.
In a Securities and Exchange Commission filing in December, the company pledged to become more involved with the company “in order to produce the best results for all shareholders.”
The company also reported a quadrupling of e-commerce sales during the nine-week holiday trading season. The figure accounted for approx. 34% of total sales.
GameStop said sales of e-commerce year-to-date exceeded $ 1.35 billion. $ And exceeded the company’s target of 1 billion. $. Sales from comparable stores increased 4.8%
GameStop said in a statement that it had seen “unprecedented demand for newly launched game consoles, and while consumer demand far exceeded the limited supply in the nine-week period, the company believes these products will drive sales well into 2021, as console availability from our suppliers will improve later in the year. “