GameStop (GME) – Get a report shares jumped sharply on Wednesday as investors reacted to recently named board members of video game retailers and boosted holiday sales results.
Shares of Grapevine, Texas, rose 68 percent to $ 33.45 in the latest audit.
Earlier this week, the retailer reached an agreement with RC Ventures to put three of the nominee investors for New York activists – Alan Attal, Ryan Cohen and Jim Grube.
A statement from GameStop said the three executives had “in-depth experience in e-commerce, online marketing, finance and strategic planning.”
The addition of Cohen and other new directors is positive given their success at Chewy (EVERYTHING) – Get a report and a vision to “make GameStop a more digitally focused retailer,” Telsey analyst Joseph Feldman wrote on Tuesday, according to Bloomberg.
Cohen is the manager of RC Ventures and co-founder of pet supply specialist Chewy.com, purchased by PetSmart in 2017 for $ 3.35 billion.
In November, RC Ventures called on the company to conduct a strategic review of its business and focus on digital sales.
In a declaration by the Securities and Exchange Commission in December, the company expressed its readiness to engage more with the company “to achieve the best results for all shareholders.”
The company also reported a fourfold increase in e-commerce sales during the nine-week holiday shopping season. The figure represents about 34% of total sales.
GameStop said e-commerce sales have so far exceeded $ 1.35 billion, exceeding the company’s target of $ 1 billion. Sales in comparable stores increased by 4.8%
GameStop said in a statement that it had noticed “unprecedented demand for recently launched gaming consoles, and while consumer demand far exceeded limited supply during the nine-week period, the company believes these products will boost sales by 2021 as console availability from our vendors improves.” later in the year. “