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GameStop Corp (NYSE: GME) lost more than 20% in extended hours after its board fired CEO Matt Furlong.

GameStop names Ryan Cohen its Executive Chairman

The gaming merchandise retailer also elected Ryan Cohen as its Executive Chairman on Wednesday. He’ll oversee management and be responsible for capital allocation, as per the press release.

GameStop also named Mark H. Robinson its principal executive officer today who will be in charge of “administrative matters, corporate development, legal affairs and support for Company’s holdings.”

The Texas-based company reported its financial results for the first quarter as scheduled but canceled earnings call following the executive shakeup.

Despite the after-hours sell-off, GameStop shares are still up nearly 30% versus their year-to-date low in mid-March.

GameStop Corp reports an 11% decline in sales

In Q1, GameStop narrowed its loss significantly to $50.5 million that translates to 17 cents a share.

Its sales, though, still tanked 11% on a year-over-year basis to $1.24 billion as consumers continued to prefer digital downloads over game discs. FactSet did not receive forecasts from a sufficient number of analysts this quarter to compile consensus estimates.

Michael Pachter of Wedbush Securities who’s among the handful of sell-side analysts still covering GME rates it at “underperform”. His $6.50 price target suggests another 65% downside.

GameStop shares trade at a level that fails to consider its many challenges ahead.

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