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Games Workshop business news 18/10/18

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October 18, 2018 at 9:23 pm #1288956

darthcheese
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Some interesting news I found on the BBC today

“We’re all in favour of corporate announcements being short and jargon-free. But today’s news from Games Workshop is so brief it raises more questions than answers.

The fantasy role playing firm, which owns the Warhammer franchise, says in a terse 70-word trading update that “sales are ahead and profits are at a similar level to the prior year”.

It adds, though, that “the board remains aware that there are some uncertainties in the trading periods ahead for the rest of the 2018/19 financial year”.

That’s sparked a 6% fall in the share price.

Says retail analyst Nick Bubb: “It’s only a month ago that high-flying Games Workshop put out a trading update at its AGM that trading was in line with management expectations… so it’s not clear why it has issued another update today.”

https://www.bbc.co.uk/news/live/business-45836801/page/3

at 08.57

I wonder what has brought this on? Over extending perhaps? Something not selling as well as expected?

October 18, 2018 at 10:26 pm #1288961

kommissar
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Unusual to release an update so soon.

Could be GW voicing concern because things are a bit…Brexity at the moment, and they fear it will have an impact on profits, especially as they have been doing a lot of expansion into the US, Europe and the rest of the world.

Or as you say, something not selling as well as expected. Not really sure what though, or more people turning to third party retailers because of the discounts.

With the over-extending, GW do have a lot of products now thanks to the reintroduction of the Specialist Games range, and I seem to recall they did mention something about running out of factory space, when they were removing a lot of Forge World products.

October 18, 2018 at 10:52 pm #1288972

limburger
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The Brexit scare could be a factor, because according to the news there could be a deal ‘any time now’. I think there were expectations of a deal today even.

I suspect GW is factoring in extra costs due to the added red tape and ill prepared companies at both sides of the pond.

I can’t blame them, because they will probably be hit hard due to their release schedule.

Over here we’ve the ‘news’ said that the majority of businesses are unprepared for Brexit, but then … it’s not like the politicians in charge have been crystal clear on the subject either. They’re still telling us it is going to be the end of the world as we know it …

October 18, 2018 at 11:17 pm #1288980

kevlin
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The brexit scare could be a very real issue for us in the miniature hobby. I imagine that I’m not the only one who will think twice before laying down a big Forge world order. Getting hit by customs on an already large order is not something Im looking forward to.Their website will get a big hit as well I imagine. And now they work hard to direct sales there with web exclusives etc.

October 18, 2018 at 11:39 pm #1288981

phaidknott
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Think it has to do with Brexit (and the latest news on the “Deal or No Deal” on the news this week). Think quite a few “hobby” related companies are going to be hit hard (as usually these things are last on the list for organising a trade deal).

October 19, 2018 at 9:17 am #1289075

onlyonepinman
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If the statement says “sales are ahead and profits are at similar levels to last year” I would suspect that the statement is more a caution about future political uncertainty and the impact that might have on business.

October 19, 2018 at 3:33 pm #1289254

torros
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elsewhere it was reported that Kirby had sold his 20 million worth of shares just before the announcement
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