GameStop Corp. - GME STOCK NEWS

GameStop Corp. (NYSE: GME) held its 2020 Annual Meeting of Stockholders on June 12, 2020, announcing the election of ten directors. New board members include nominees Kurtis Wolf and Paul Evans from Hestia Capital and Permit Capital. The Board, now comprising ten members, sees the retirement of several longstanding members including Daniel DeMatteo. Kathy Vrabeck has been appointed as Chair of the Board. The company will file the official voting results with the SEC within four business days, emphasizing its ongoing commitment to stockholder value and a stable leadership structure.

GameStop Corp. (GME) reported first-quarter net sales of $1.021 billion, with a 17% decline in comparable store sales, excluding COVID-19 closures. E-commerce sales surged 519%, reflecting an increased focus on online shopping during the pandemic. Despite a net loss of $165.7 million, the company ended the quarter with $570 million in cash, a 43% reduction in inventory, and a 54% decline in accounts payable compared to last year. GameStop is cautiously optimistic about future sales growth as new gaming consoles and software titles are expected to launch.

GameStop Corp. (NYSE: GME) announced a private exchange offer for $414.6 million of its 6.75% Senior Notes due 2021. The company aims to replace these with 10.00% Senior Secured Notes maturing in 2023, providing financial flexibility. Validly tendering holders will receive $1,000 in new notes for each $1,000 in existing notes. The offer expires on July 1, 2020, with an early tender date of June 17, 2020. The new notes are secured by first and second-priority liens on assets, and the exchange is contingent on a consent solicitation to remove restrictive covenants.

GameStop Corp. (NYSE: GME) released preliminary unaudited financial results for Q1 2020, revealing a projected global sales decline of 33% to 35%, with comparable store sales decreasing by approximately 30% to 31%. Approximately 76% of its international stores faced temporary closures due to COVID-19, but U.S. locations that offered curbside pickup exceeded sales plans. Cash from operations is expected to be approximately ($49) million, an improvement from ($665) million year-over-year. The company holds around $570 million in cash and expects liquidity to be sufficient for ongoing operations.

GameStop Corp. (NYSE: GME) has announced a change of location for its Annual Meeting of Stockholders, originally scheduled for June 12, 2020. The new venue is 633 Westport Parkway, Grapevine, Texas, instead of the Hilton Southlake Town Square. Shareholders who held shares by the record date of April 20, 2020, are entitled to attend and vote. Relevant proxy materials have been filed with the SEC and are available for shareholders. GameStop operates over 5,300 stores globally, specializing in video games and collectibles.

GameStop Corp. (GME) has reaffirmed its commitment to a comprehensive business transformation plan, GameStop Reboot, while urging stockholders to reject dissident stockholders' attempts to replace qualified board members. In a recent letter, the board emphasized its stability and expertise, noting the addition of six new independent directors since 2018. Despite multiple settlement offers being rejected by dissidents, the board remains focused on enhancing long-term value for all shareholders. The company has noted positive total shareholder return compared to peers, citing the potential for continued growth amid market pressures.

GameStop Corp. (NYSE: GME) announced it will disclose its first quarter fiscal 2020 earnings on June 9, 2020, after market closure. An investor conference call is scheduled for 5:00 pm ET the same day to discuss financial results. Investors can access the call by dialing 877-451-6152 with confirmation code 13703604, and the call will be archived for two months. GameStop operates approximately 5,300 stores in 14 countries, offering a wide selection of video game consoles, games, and collectibles.

GameStop has issued a letter urging stockholders to vote for its ten qualified director nominees at the upcoming Annual Meeting on June 12, 2020. The letter criticizes Hestia Capital and Permit Capital for nominating candidates lacking the necessary industry experience, asserting their proposals could jeopardize the company's transformation plan. The refreshed Board, with strong retail and gaming expertise, aims to create long-term value amid a challenging market. GameStop encourages the use of the BLUE proxy card to support its nominees and protect shareholder interests.

GameStop Corp. has released an investor presentation titled "Driving Value for All Stockholders," emphasizing its recent Board and management refreshment and the execution of its transformation plan, "GameStop Reboot." The Board urges stockholders to vote using the BLUE proxy card in the upcoming Annual Meeting on June 12, 2020, against nominees from Hestia Capital and Permit Capital. Key highlights include an improved capital structure, a reduction of $401 million in debt, and a significant cash position of around $500 million, aiming for sustainable growth amidst COVID-19 challenges.