Can GameStop’s New CEO Deliver a Turnaround?
March 22, 2019 by Chris LangeGameStop Corp. (NYSE: GME) 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.
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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