After reporting its first quarterly profit in two years in March 2023, troubled retailer GameStop posted a $50.5 million loss in Q1 2023, which ended April 29, 2023. Net sales of $1.24 billion for the period were down from $1.38 billion for the same period last year.
Additionally, GameStop CEO Matt Furlong has been terminated, according to a company press release that also announced Ryan Cohen’s promotion to Executive Chairman of the GameStop board of directors. In July 2022, Cohen reportedly pushed out GameStop’s then-CFO Michael Recupero for being “too hands off” as the company prepared for corporate layoffs
GameStop has been charting a rocky path since its stock drama in early 2021, when small investors teamed up online to purchase shares that made the retailer’s stock price soar, forcing hedge funds that had bet against the retailer to lose billions. In June 2021, GameStop hired Furlong and Recupero, who had previously held senior roles at Amazon, as part of the company’s efforts to reinvent itself as a major ecommerce and metaverse player.
The retailer launched an NFT marketplace in October 2022, but following poor financial results for its Q3 2022, which ended Oct. 29, 2022, the retailer initiated layoffs that were reportedly concentrated in its struggling crypto division.