Tuesday, 25 January 2011
Games Workshop Half-Year Results
Just to follow up on the GW post earlier this month: They've now posted the results that the earlier profit warning foreshadowed. These results are in line with the earlier statement, sales in the six months to 28th November down 4% at £60 million. Profits for the same period were down 15% on the previous year at £6.7m.
Mark Wells, Chief Executive, said: "We made some changes to our staffing in stores, so in the school summer holidays, when our stores are busiest, we had inexperienced managers and we were a bit flat-footed. The focus remains on investing in openings and improving retail volume. Cash generation remains strong."
GW shares are down about 1% this morning, having already fallen around 20% on the back of the profit warning in early January. Next time I'm in town, I might venture into a GW store to see what's what. Failing that, I'll report back when they issue their full year results. I haven't changed my view that they may be in for a rough ride. Even though they are not directly comparable, Wizards of the Coast's decision to drop the D&D miniatures line also points to a shift in the market.