Can GameStop’s New CEO Deliver a Turnaround?
The question is, can a new CEO turn things around for the embattled gaming company GameStop?
GameStop Corp. (NYSE: GME | GME Price Prediction) seems to have solved one problem with its executive team, as it announced that it has found a new CEO. This comes amidst a potential proxy fight from activist firms and a slowly declining stock. The question is, can this new CEO turn things around for the embattled gaming company.
The board of directors has appointed George Sherman as chief executive and member of the board, effective April 15, 2019. Sherman will succeed Shane Kim, who has served as interim CEO since May 2018 and as a director since July 2011. Most recently, Sherman served as CEO of Victra, the largest exclusive authorized retailer for Verizon Wireless products and services.
In addition to being CEO at Victra, Sherman also served as president and interim CEO for Advance Auto Parts. As president of Best Buy Services, Sherman led consumer services, small- and medium-business capabilities, channel partnerships and Best Buy for Business. Prior to Best Buy, Sherman ran the operations and home services divisions of Home Depot and spent 14 years with Target in various leadership positions.
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Sherman commented on the appointment:
I am honored to have the opportunity to lead GameStop, one of the leading and most recognized brands in the video game industry. I bring significant experience working with other retailers that have undergone large, successful transformations and look forward to leveraging GameStop’s industry position, history and brand. The team has already done extensive strategic work to identify and pursue new customer-centric opportunities that will further expand the culture of gaming in new and exciting ways. I look forward to leading our associates and believe that we have a tremendous opportunity in front of us to continue to fuel the passion of gamers around the world.
Overall, GameStop has underperformed the broad markets, with its stock down 16% year to date. In the past 52 weeks, the stock is actually down 27%.
Shares of GameStop were last seen trading at $10.62, in a 52-week range of $10.35 to $17.27. The consensus price target is $12.00.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
