Pedestrians pass a GameStop store in New York
Scott Mlyn | CNBC
GameStop said Wednesday that it has named former Amazon executive Matt Furlong as its new CEO.
It has also elected another former Amazon executive, Mike Recupero, to be its chief financial officer.
GameStop’s stock fell more than 12% in expanded trading after the company announced its new leadership and first quarter results, which showed sales up 25% and lower losses than a year ago.
Furlong will take up his new position on June 21st. He has been with Amazon for nearly nine years, most recently leading the growth of the Australian business. Prior to that, he was technical advisor to the head of Amazon’s North American consumer business for Procter & Gamble.
Recupero started his career at Amazon 17 years ago. Most recently, he was chief financial officer of the North American consumer business. He previously held similar positions in Amazon’s Prime Video, European Consumer and Advertising departments.
The video game retailer is in the early days of trying to turn its business around. It has named a new list of executives who are spearheading the transition from a brick and mortar retailer to an online player capable of fending off competitors like Walmart, Sony and Microsoft. The company needs to find a strategy to increase sales. The stock also got a boost from a Reddit-inspired trading frenzy.
In the past few months the company has hired three former Amazon executives; Jenna Owens, its new chief operating officer; Matt Francis, its first chief technology officer; and Elliott Wilke, their chief growth officer. It has also hired Chewy co-founder Ryan Cohen to lead its e-commerce efforts. Cohen named Cohen chairman at a shareholders meeting on Wednesday.
Cohen got involved in GameStop last year. In January, he and two other former Chewy executives were appointed to the retailer’s board of directors under an agreement with management.
GameStop said earlier that outgoing CEO George Sherman would step down on July 31 or earlier until a successor is appointed.
Read GameStop’s profit announcement here and GameStop’s press release here.