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GameStop (GME) terminated Chief Executive Matthew Furlong and reporterd lower fiscal first-quarter revenue year-over-year amid declining software and collectibles sales.
Furlong resigned from the company's board, leaving GameStop with five directors.
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"Mr. Furlong's resignation did not result from any disagreement with the company on any matter relating to the company's operations, policies or practices," GameStop said in a filing with the Securities and Exchange Commission.
Shares plunged 19% in after-hours trading.
The board named Ryan Cohen executive chairman, effective immediately. His responsibilities will include allocation of capital, seeking potential investments and acquisitions and oversight of management.
Cohen is the manager of RC Ventures and "a sizable stockholder" of GameStop, according to information posted on the gaming company's website. Cohen was one of the founders and served as CEO of Chewy (CHWY).
For the quarter ended April 29, GameStop's sales declined to $1.24 billion from $1.38 billion a year earlier, while its adjusted loss narrowed to $0.14 a share from $0.52. Three analysts polled by Capital IQ estimated revenue of $1.36 billion and a loss of $0.12 a share, respectively.
Sales from hardware and accessories rose to $725.8 million in the fiscal first quarter from $673.8 million last year. Software revenue fell to $338.3 million from $483.7 million, while collectibles declined to $173 million from $220.9 million.
The company said it won't host a previously scheduled conference call on Wednesday.