GameStop's Q1 earnings can't match last year's Switch-driven highs

Word is out today about how GameStop's finances fared in its most recent quarter, and the word seems to be not great, as the retail chain reports a slight dip in sales and a bigger dip in profits year-over-year.

For the 13 months ending May 5th, GameStop reportedly earned $57.1 million (GAAP) on $1.93 billion in sales. That's a bit less revenue and about half as much profit as the company reported a year earlier, when it earned $101.1 million on $2.04 billion in sales.

According to GameStop, this drop was expected since the first quarter of last year was dominated by the better-than-expected launch of Nintendo's Switch, as well as big sellers like The Legend of Zelda: Breath of the Wild.

This is also how GameStop accounts for a 7.9 percent decrease in sales of new hardware, a 10.3 percent decrease in sales of new software, and a 5.3 percent decrease in sales of pre-owned goods compared to the same period last year.

However, the company says it's not making any changes to its earnings forecast for the full fiscal year, which is expected to be slightly lower than last year's earnings. The company also took this opportunity to announce that it has promoted board member (and former Microsoft VP) Shane Kim to the post of interim CEO as it searches for a more permanent option.