Games Workshop just released it’s 2014 half year report today, has the new CEO reversed their downward slide?
From a layman’s perspective nothing appears to have changed much honestly. Sales are still down, ROI is down, White Dwarf sales are down, and they seem to blame everything on North American and ‘Continental’ Europe.
The thing I saw that was ‘new’ to this type of report was the admittance of a drop of sales in White Dwarf, because I thought the whole idea was to sell them weekly to generate more sales, and drive traffic to stores.
Also curious was the wording ‘declines in nonstrategic
accounts’ which seems to indicate a larger loss of Independent Partner Level Stores, as in these flagship non-Games Workshop stores have just stopped selling their products altogether?
However all that being said (continued losses, etc.) the new CEO “remains confident in the future growth and profitability of the Group.”
Game Workshop’s 6mos Report
Here’s what stuck out to me;
Use of capital
Core business return on average capital employed** declined in the period to 38.3% (2013: 45.5%).
Sales
Sales fell by 6.6% to £56.5 million. The net exchange rate impact of the stronger pound was £2.1
million and, on a constant currency basis, sales were down by 1.7%. We now report our sales by
channel; our own stores: ‘Retail’; our trading partners: ‘Trade’; and our online shop: ‘Mail Order’.
Retail
This channel showed growth in the UK offset by declines in North America and Continental Europe
attributable mainly to the extensive restructuring that took place over the last year.
Trade
This channel showed growth in North America, Australia and the UK, offset by larger declines in nonstrategic
accounts and magazine sales. The net effect was a decline of 5.1% (£1.2 million).
Kevin Rountree, CEO of Games Workshop, said:
“Games Workshop’s core business model remains strong. Our current initiatives of ever better weekly
new product releases, the low cost one man stores in retail and the stockist programme in trade, are
designed to lead to growth. The board remains confident in the future growth and profitability of the
Group.”
Full Financial Roundup
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About the Author: Rob Baer
Rob Baer
Job Title: Managing Editor
Founded Spikey Bits in 2009
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About Rob Baer: Founder, Publisher, & Managing Editor of Spikey Bits, the leading tabletop gaming news website focused on the hobby side of wargaming and miniatures.
Rob also co-founded and currently hosts the Long War Podcast, which has over 350 episodes and focuses on tabletop miniatures gaming, specializing in Warhammer 40k. and spent six years writing for Bell of Lost Souls.
Every year, along with his co-hosts, he helps host the Long War 40k Doubles Tournament at Adepticon and the Long War 40k Doubles at Las Vegas Open, which attracts over 350 players from around the world.
Rob has won many Warhammer 40k Tournaments over the years, including multiple first-place finishes in Warhammer 40k Grand Tournaments over the years and even winning 1st place at the Adepticon 40k Team Tournament.
With over 30 years of experience in retail and distribution, Rob knows all the products and exactly which ones are the best. As a member of GAMA (Game Manufacturers Association), he advocates for gaming stores and manufacturers in these difficult times, always looking for the next big thing to feature for the miniatures hobby, helping everyone to provide the value consumers want.
While he’s played every edition of Warhammer 40k and Warhammer Fantasy (since 5th Edition) and has been hobbying on miniatures since the 1980s, Titans of all sizes will always be his favorite! It’s even rumored that his hobby vault rivals the Solemnance Galleries, containing rulebooks filled with lore from editions long past, ancient packs of black-bordered Magic Cards, and models made of both pewter and resin.
