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Games Workshop December sales disappoint
Fantasy model games retailer Games Workshop has warned on profits after December sales dropped below expectations across the group.
The retailer said sales in the six months to 29 November edged down 2.2% to £55.3 million. Meanwhile, pre-tax profit remained flat at £6.3 million.
Regarding performance in the run-up to Christmas, Games Workshop added: “December sales were below expectations across the group. At this stage in the company's financial year, the company's internal projections indicate that pre-tax profit for the year to 29 May 2016 is unlikely to exceed £16 million. A further update will be made when appropriate.”
Including relocations, Games Workshop opened 22 one man store format stores and three multi-man format stores in the period. It also started a trial of four multi-man format stores in high footfall locations in Sydney, Munich, Paris and Copenhagen. After closing 13 stores, the net total number of stores at the end of the six month period was 430.
Kevin Rountree, chief executive of Games Workshop, said: "We have made some good progress on our strategic initiatives all focused on delivering long term growth. Whilst we are disappointed with the decline in return on capital reported in the period, we are all confident that we are focused on delivering the necessary changes to address this decline.”