GameStop Just Announced Former Amazon Execs as New CEO and CFO

GameStop, one of the Reddit meme stocks to explode this year, has announced new management.

The company revealed this week that former Amazon executives Matt Furlong and Mike Recupero would be the new CEO and CFO, respectively.

Shares were down over 12% in after-hours trading on Wednesday on the company’s announcement and its first quarter financial report.

For the first quarter, GameStop revealed that sales were up 25% and the company had a narrower loss than it reported one year ago.

The company reported adjusted operating loss of ($21.6) million compared to ($98.8) million in the fiscal 2020 first quarter; Net loss of ($66.8) million, or ($1.01) per diluted share as compared to net loss of ($165.7) million, or ($2.57) per diluted share, in the fiscal 2020 first quarter.

Looking ahead, GameStop said it is continuing to suspend guidance at this time; however, it believes total net sales is the most appropriate metric to evaluate performance at this time.

The Company’s second quarter sales trends continue to reflect momentum, with May total sales increasing approximately 27% compared to last year.

Furlong, who has worked for Amazon for nearly nine years, will start his new role on June 21. Furlong has also served as a technical advisor to the head of Amazon’s North America consumer business and worked for Procter & Gamble.

Recupero began his career at Amazon 17 years ago and recently was the chief financial officer of its North American consumer business.

In the last few months GameStop had also hired three former Amazon executives, Jenna Owens, its new chief operating officer; Matt Francis, its first chief technology officer; and Elliott Wilke, its chief growth officer.

The company also added on Chewy co-founder Ryan Cohen to lead its e-commerce efforts. Cohen was named Chairman this week. Cohen had taken a stake in GameStop last year.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.