GameStop ousts CEO after recording $50.5 million quarterly net loss

GameStop kicked off its fiscal results by announced that it has fired president and CEO Matthew Furlong "without cause."

In an SEC filing (thanks IGN), the U.S. video game retailer said its board of directors terminated Furlong on June 5, 2023. A successor hasn't been announced, but board chairman Ryan Cohen has been named executive chairman.

"Leadership transitions can be inherently difficult to manage, and failure to timely or successfully implement transitions may cause disruption within the Company, including execution of our transformational plans," reads the filing.

"This may adversely impact our financial performance and ability to meet operational goals and strategic plans, our ability to retain and hire other key members of management, and the market price of our Class A common stock."

Desperately seeking profitability

In his new role, Cohen will focus on "capital allocation and overseeing management" with the aim of unlocking long-term value creation for GameStop stockholders.

GameStop said it intends to stabilize and optimize its core business to "achieve sustained profitability" under its new leadership structure, but didn't outline when it intends to have a new CEO in place.

That changing of the guard comes with net sales falling year-on-year to $1.24 billion from $1.37 billion during the first quarter.

The company also posted a net loss of $50.5 million, which is less than the $157.9 million loss it recorded over the same period last year.