GameStop beats first-quarter profit estimates, but maintains full-year forecast

The company reported a few weeks after launch that Switch was doing "phenomenal" in early sales, and could eclipse the Nintendo Wii's success.

"Our first quarter results reflect the power of our leadership position within the video game market and our ongoing diversification efforts", said CEO Paul Raines.

Nintendo expects the Switch to more than double its annual operating profit.

That figure is important because it's just a smidge higher than the 1.1 million Wiis GameStop says it sold in the US during that console's first two months on sale in 2006. The new Switch is a hybrid game machine that works as both a console and a tablet. Collectibles - which include toys and games, apparel, accessories, and others - also grew 39.1 percent to $114.5 million thanks to Pokémon products. In 50 of their larger stores, they'll be dedicated half the floor space to collectibles, and they're planning on adding about 20 more ThinkGeek stores in the USA and 15 overseas.

GameStop has reported its first quarter earnings, and despite a slight slump on the USA side, the company had a 3.8% overall growth over the same quarter a year ago, with $2.05 billion in sales.

The Nintendo Switch saved GameStop's quarter, as expected, but strong performance there didn't blind investors against the problems elsewhere in the company.

In April, video game sales soared 10% to $636 million, according to the NPD Group, marking a second-straight quarter of growth after nine consecutive quarters of declines.

GameStop reported a profit of $59 million, or 58 cents a share, versus a profit of $65.8 million, or 63 cents a share.

Net sales climbed 3.8 percent to $2.05 billion in the quarter, beating analysts' average estimate of $1.94 billion, according to Thomson Reuters I/B/E/S. Shares gained 91 cents, or 4 percent, to close at $23.62.

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