GameStop Plunges As CEO Matt Furlong Fired Following Wider Q1 Loss; Ryan Cohen Takes Over

Updated at 4:451 pm EDT

GameStop  (GME) - Get Free Report shares plunged lower in after-hours trading Wednesday after the video game retailer posted a wider-than-expected second quarter loss and fired its CEO Matt Furlong.

Furlong, who joined GameStop only two years ago, will be replaced by billionaire investor and group chairman Ryan Cohen, the company said.

Furlong, a former Amazon  (AMZN) - Get Free Report executive was named GameStop CEO in June of 2021, around the same time Cohen was selected as group chairman following the retailer's annual meeting in Grapevine, Texas.

GameStop said its adjusted loss for the three months ending in March was pegged at 14 cents per share, up from a loss of 52 cents over the same period last year but outside the Street consensus forecast of a 12 cents per share loss. 

Revenues were down 10.2% to $1.24 billion, a tally that also missed analysts' estimates of a $1.36 billion tally.

The group said it would not be holding a conference call with investors to discuss its first quarter earnings, but said it would explore further "strategic options", including further store closings and the exit of unprofitable businesses, over the coming months.

• Wall Street's 'Fear Gauge' at 3-Year Lows as S&P 500 Nears Bull Market

"GameStop Corp today disclosed that its Board of Directors has elected Ryan Cohen as Executive Chairman, effective immediately," the company said in a brief statement. "Mr. Cohen’s responsibilities include capital allocation and overseeing management."

"In conjunction, the Company’s former CEO has been terminated," the statement added.

GameStop shares were marked 18% lower in after-hours trading immediately following the earnings release to indicate a Thursday opening bell price of $21.43 each.

Furlong, a former Amazon  (AMZN) - Get Free Report executive was named GameStop CEO in June of 2021, around the same time Cohen was selected as group chairman following the retailer's annual meeting in Grapevine, Texas.