Shares of GameStop rose 6.3% Monday.
Sherman, a veteran retail executive who has only been CEO of GameStop since April 2019, inherited a tough job when he took over two years ago.
“I am very proud of what we have accomplished at GameStop over the past two years, including during the difficult Covid-19 pandemic,” Sherman said in a statement. “We have helped bring stability and strength to the business.”
Sherman was charged with turning around GameStop at a time when many gaming console sales were declining and people were increasingly downloading new games instead of buying them from stores. Shortly after Sherman joined the company, he announced plans to close up to 200 stores.
“GameStop appreciates the valuable leadership that George has provided throughout his tenure. He took many decisive steps to stabilize the business during challenging times. The Company is much stronger today than when he joined,” Cohen said in a statement.
But Sherman never really got much of a chance to execute his turnaround plan. The onset of the Covid-19 pandemic in March 2020 upended the economic landscape for the entire retail industry. GameStop was forced to temporarily close stores.
GameStop’s stock is up more than 700% this year — although shares are trading nearly 70% below the Reddit-infused all-time high from late January.
Te transition is showing some early signs of success.