Customer care was always the focus at Chewy, so GameStop’s increased investments in support for the gaming retailer should be no surprise.

GameStop Corp. today announced that the company plans to hire up to 500 employees at its newly-leased customer service center in Pembroke Pines, Florida.

The new 30,000 square foot facility is expected to be operational by the end of 2021.

First Stop to the moon, Florida

On top of what we saw in the spring, GameStop has reportedly been recruiting vigorously in South Florida, with the company’s very own Kelli Durkin, Senior Vice President Customer Service, sharing a photo of a new billboard via Twitter.

GameStop may finally be embracing their new meme status. How do you do, fellow kids?

The SVP has been interactive with fans on Twitter, sharing selfies at corporate events and around the office.

When Ryan Cohen, GameStop’s Chairman, was asked how he finds his management teams during a 2018 Miami Herald interview, he gave his endorsement for LinkedIn.

We use a special proprietary tool called LinkedIn and we look for people with very relevant experience at companies we respect and we shoot them a message. … We hand-picked these people. They are the best of the best, the Navy Seals of management teams.

Posts searching for talent are rampant on LinkedIn, with a clear emphasis on hiring gamers who have passion.

Justin Margerum is just one of the latest recruiters for the new GameStop.

Why Florida?

Back in May, GMEdd.com speculated in a piece titled GameStop Hints at New Florida Office that the fast-paced e-commerce initiatives warranted the company soon opening a Florida-based call center.

Job postings on GameStop’s website, along with activity on LinkedIn and Twitter from employees, seem to be hinting towards a South Florida-based customer support center for GameStop. [GMEdd.com, May 18th 2021]

GameStop claims that the facility will be an integral part of the Company’s U.S.-based customer care operations.

South Florida is hot for startups

Entrepreneurs are flocking to South Florida to start companies, Kerry Close of Inc.com claims.

The region is emerging as a hotbed for startups, local entrepreneurs say, with 139 companies on the Inc. 5000 list based in the Miami-Fort Lauderdale-Pompano Beach metro area. No one particular industry is flourishing in the region–everything from health technology to media to food boast fast-growing companies.

There are also economic benefits to relocating to South Florida, such as the lack of income tax in the state, and cheaper living costs than can be found many other startup hubs around the country.

While GameStop Corp. isn’t a startup, the transformation story isn’t far from one.

Past Success

It’s worth noting that Chewy started in South Florida and still operates the business from the Fort Lauderdale area.  Chewy employs over 17,000 people nationwide, with 3,000 in South Florida, making it one of the largest locally based employers in the region.

Ryan Cohen co-founded Chewy in 2011. In 2017, Chewy was acquired by PetSmart for $3.35 billion, which was the largest ever acquisition of an e-commerce business at the time.

With an office nearby, GameStop could easily tap into Chewy’s talent pool. GameStop has been recruiting hordes of former Chewy employees, and it is possible that the lack of forced relocation has been a major incentive.

Sources: GameStop News Room, Inc.com, Inc.com, Reddit, Kelli Durkin on Twitter, Margerum on LinkedIn

GameStop Corp. today released financial results on the company’s new Investor Relations platform for the second quarter ended July 31, 2021.

The gaming retailer published condensed and consolidated financial statements for the quarter.

The Company’s Form 10-Q and supplemental information can be found at GameStop’s Investor Relations.

SECOND QUARTER OVERVIEW

Generated net sales of $1.183 billion, compared to $942 million in the prior year’s second quarter.

Ended the period with cash and restricted cash of $1.78 billion.

Ended the period with no long-term debt, other than a $47.5 million low-interest loan associated with the French government’s pandemic response.

Invested in long-term growth initiatives that include expanding the Company’s product catalog, enhancing its fulfillment network capabilities and technology, and adding talent across the organization.

Entered into a lease of a new 530,000 square foot fulfillment center in Reno, Nevada, positioning the Company’s fulfillment network to span both coasts of the continental U.S.

Entered into a lease of a new customer care center in Pembroke Pines, Florida and started building out U.S.-based customer care operations.

THE RELEASE

GameStop’s Earnings Release can be found here:

GameStop News Room, September 08 2021

GameStop’s Q2 2021 Earnings Call can be heard here:

Q2 2021 Gamestop Corp. Earnings Conference Call (YouTube, Webcast)

GameStop’s Form 10-Q can be found here: 

COMMISSION FILE NO. 1-32637   (HTML, IXBRL, RTF, PDF, XLS, XRBL)

Source: GameStop News Room

GameStop Corp., today announced that it will report second quarter fiscal 2021 earnings results after the market closes on Wednesday, September 8, 2021.

The gaming retailer in the midst of transformation will host an investor conference call at 5:00 pm ET on the same day to review the company’s financial results. This call and any supplemental information can be accessed at GameStop’s investor relations home page.

Where to tune in

The phone number for the investor conference call is 877-451-6152 and the confirmation code is 13722703. The conference call will be archived for two months on GameStop’s corporate website.

GMEdd.com has hosted livestreams for prior conference calls, as viewership often surpasses what GameStop’s systems can handle.

We advise all GameStop investors follow @GMEdd on Twitter for updates.

The significance

This will mark the first earnings call since the departure of former CEO George Sherman, so a change of pace is to be expected.

While Ryan Cohen announced at the Annual Shareholder’s Meeting that he does not plan to talk a big game, investors will anticipate some direction from the gaming retailer under new leadership.

The newly instated CEO Matt Furlong, a former Amazon executive, will likely speak during the majority of the conference call, if tradition continues.

Source: GameStop News Room

On Wednesday, July 28th, GameStop Corp. announced that the Company plans to rebrand existing and future EB Games in Canada.

By the end of this year, EB Games’ Canadian locations and online store will assume the GameStop brand and name. The decision aligns with Ryan Cohen’s plans to revitalize retail.

GameStop claims the rebranding follows feedback from valued customers and stockholders.

GameStop’s News Release from July 28, 2021

GameStop’s Annual Report reveals that as of January 30th, 2021, GameStop has 253 locations in Canada, making up 15.58% of their international store base. 

GameStop Corp. has disposed of 46 brick-and-mortar EB Games locations in Canada in over a year, citing data from January 30th 2021.

On Sunday, GMEdd.com released a piece titled Ryan Cohen to Revitalize Retail, speculating that GameStop could use the stock market frenzy in January as the perfect consumer awareness campaign to rebrand international EBgames locations into GameStop stores.

The stock market phenomenon surrounding GameStop shares that shook financial markets in January 2021 can work as a groundwork for the perfect, free, consumer awareness campaign required to rebrand international stores, such as EBgames, into a cohesive GameStop identity. [GMEdd.com, July 25th 2021]

Source: GameStop News Release, GameStop Form 10-k

With GameStop opening their second fulfillment center under Ryan Cohen’s leadership in Reno, Nevada the gaming retailer’s plan seems strikingly familiar.

GameStop today announced the continued expansion of its North American fulfillment network and entry into a lease of a 530,000 square foot facility in Reno, Nevada, which is expected to be operational in 2022.

Positioning

GameStop states that a new presence in Reno, Nevada will position the company to grow product offerings and expedite shipping across the west coast. This expansion follows GameStop’s entry into a lease of a 700,000 square foot facility in York, Pennsylvania.

Chewy parallels

When Ryan Cohen was asked about fulfillment at Chewy during his TechCrunch interview in 2019, the founder discusses how his leap of faith started by the opening of a fulfillment center in Pennsylvania and then one in Reno, Nevada.

We hired a bunch of people who were experts in fulfillment and we flew to Mechanicsburg, Pa. to lease a 400,000-square-foot space, and within nine months or so, we became expert at doing fulfillment. It was risky. It was totally outside of our areas of competence. But by August of 2014, after breaking everything first, that center was humming along, and then we launched another in Reno. At that point, we went national. 

The Rise of Chewy to Prove the Core Value of Any E-commerce Product by Ally Nguyen states that a year after that first breakthrough in Pennsylvania, Cohen launched Chewy’s second building in Reno, Nevada, and that second time just seems like the one-hundredth already.

Sources: GameStop News Room, TechCrunch, Envzone

GameStop Corp. today announced that it has completed its previously announced “at-the-market” equity offering program.

GameStop disclosed on June 9, 2021 that it filed a prospectus supplement with the U.S. Securities and Exchange Commission to offer and sell up to a maximum of 5,000,000 shares of its common stock from time to time through the ATM Offering.

GameStop ultimately sold 5,000,000 shares of common stock and generated aggregate gross proceeds before commissions and offering expenses of approximately $1,126,000,000.

GameStop states that the company will use net proceeds from the ATM Offering for general corporate purposes as well as for investing in growth initiatives and maintaining a strong balance sheet.

Source: GameStop Form 8-K, GameStop News Room

George Sherman, who was set to officially step down from his CEO role next month, has served as the Grapevine-based video game retailer’s chief executive since 2019.

GameStop Corp. today announced the appointment of Matt Furlong to the Company’s Board of Directors, effective immediately. The appointment date aligns with Mr. Furlong’s start date as GameStop’s new Chief Executive Officer.

Coinciding with Mr. Furlong’s appointment, George Sherman has retired from the Board. Five of the six members of the Board remain independent.

Furlong was named GameStop’s incoming CEO earlier this month at Q1 2021 Earnings. Furlong, a former Amazon executive, was hired as part of new chairman Ryan Cohen’s plan to expand e-commerce initiatives.

Sherman’s resignation from the board is effective immediately.

Source: GameStop News Room

Announced in addition to Quarter 1 earnings, GameStop Corp. intends to file with the U.S. Securities and Exchange Commission a prospectus supplement to the base prospectus included in the Company’s shelf registration statement on Form S-3 under which the Company may offer and sell up to 5 million shares of its common stock, from time to time, in “at-the-market” offerings.

The Company intends to use net proceeds for general corporate purposes as well as for investing in growth initiatives and maintaining a strong balance sheet. The timing and amount of any sales of shares, if any, will depend on a variety of factors, including prevailing market conditions, the trading price of shares and other factors as determined by GameStop Corp.

In the prospectus supplement, GameStop states that on June 8, 2021, the last reported sale price of common stock on the NYSE was $300.00 per share.

Our common stock has recently experienced extreme volatility in price and trading volume. From January 11, 2021 to June 8, 2021, the closing price of our common stock on the NYSE ranged from as low as $19.94 to as high as $347.51 and daily trading volume ranged from approximately 1,790,000 to 197,200,000 shares. 

Jefferies will be entitled to compensation at a commission rate of up to 1.5% of the gross sales price per share of common stock sold through it as sales agent pursuant to the Sales Agreement. 

Source: GameStop News Room, GameStop Investor Relations

Net Sales Grew 25% to $1.3 Billion

Appoints Technology Veterans Matt Furlong and Mike Recupero to CEO and CFO Positions, Respectively

GameStop Corp. (NYSE: GME), today reported results for the first quarter ended May 1, 2021.

First Quarter Fiscal 2021 Highlights

  • Net sales increased 25.1% to $1.277 billion, compared to $1.021 billion in the fiscal 2020 first quarter, overcoming a nearly 12% reduction in the Company’s global store base due to strategic de-densification efforts, and continued store closures across Europe due to the COVID-19 pandemic;
  • Gross margin was 25.9%, a decline of 180 basis points compared to the fiscal 2020 first quarter;
  • Reported selling, general and administrative expenses were $370.3 million, a decline of $16.2 million, or 4.2%, from $386.5 million in the fiscal 2020 first quarter. Adjusted for severance, transformation and other costs, selling, general and administrative expenses were $351.7 million, a decline of $29.5 million, or 7.7%, from $381.2 million in the fiscal 2020 first quarter;
  • Operating loss of ($40.8) million compared to ($108.0) million in the fiscal 2020 first quarter. 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. Adjusted net loss of ($29.4) million or ($0.45) per diluted share, compared to adjusted net loss of ($157.6) million or ($2.44) per diluted share in the fiscal 2020 first quarter;
  • Adjusted EBITDA of ($0.7) million compared to ($75.5) million in the fiscal 2020 first quarter, and;
  • Income tax expense was $1.3 million compared to income tax expense of $50.4 million in the fiscal 2020 first quarter.  

Capital Structure and Liquidity Update

As of May 1, 2021, the Company had $770.8 million in cash and restricted cash, compared to $583.9 million in cash and restricted cash in the prior year. The Company had no borrowings under its asset-based revolving credit facility and no long-term debt.

On April 26, 2021, the Company announced it raised approximately $551.7 million in net proceeds through the issuance of 3.5 million shares of common stock under its “at-the-market” equity offering program, resulting in total shares outstanding of approximately 71.9 million. The Company has used and intends to continue using net proceeds to accelerate GameStop’s transformation as well as for general corporate purposes and further strengthening the balance sheet.

On April 30, 2021, the Company completed its voluntary early redemption of $216.4 million in principal amount of its 10.0% Senior Notes due 2023 on April 30, 2021. This voluntary early redemption covered the entire amount of the outstanding 10.0% Senior Notes, which represented all of the Company’s long-term debt.

Earnings Conference

GameStop has unveiled on their investor relations page that they will be livestreaming the Q1 2021 Earnings conference call webcast on YouTube.

This is highly unlike most other public companies, and may be a sign of GameStop paving the way to become more forward facing and shareholder-friendly with Ryan Cohen now serving as Chairman of the Board.

Source: GameStop News Room

Matt Furlong, Veteran E-Commerce Leader and Technology Industry Executive, Appointed CEO

Mike Recupero, Seasoned Technology Industry Finance Executive, Appointed CFO

GameStop Corp. today announced that it has appointed Matt Furlong as Chief Executive Officer and Mike Recupero as Chief Financial Officer. Mr. Furlong and Mr. Recupero join from Amazon, where they each held senior roles and oversaw various growth initiatives during their respective tenures. 

Matt Furlong, Incoming Ceo

Mr. Furlong is a veteran e-commerce leader with significant experience implementing growth strategies across global geographies and product categories. Most recently, he was a Country Leader and oversaw Amazon’s Australia business during a period of substantial growth. He was previously a Technical Advisor to the head of Amazon’s North America Consumer business. Throughout his nearly nine years at Amazon, he also ran a variety of product categories and oversaw strong market share expansion. Mr. Furlong began his career at Procter & Gamble, where he was an executive focused on brand, marketing and sales strategies.

Mike Recupero, Incoming CFO

Mr. Recupero is a seasoned technology industry finance executive, who spent more than 17 years at Amazon supporting growth across global geographies and product categories. He most recently served as Chief Financial Officer of the North American Consumer business after serving as Chief Financial Officer of Prime Video. He previously served as the Chief Financial Officer of the European Consumer business. He began his career at Amazon, holding Analyst, Manager and Director roles of increasing responsibility.   

Start Dates

These appointments reflect the refreshed Board’s focus on building a technology company and investing in growth. Mr. Furlong’s start date is June 21, 2021 and Mr. Recupero’s start date is July 12, 2021.

Source: GameStop Newsroom