Something I've picked up from IGMB. A financial report by GW, along with some info from BoLS.
The short of it:
Quote from: http://www.lounge.belloflostsouls.net/showthread.php?40713-Games-Workshop-s-stock-loses-24-value-today-It-has-begunYear per year revenue down 12%
Year per year profit down 31%
Linky to statement. (http://investor.games-workshop.com/wp-content/uploads/2014/01/2013-14-Press-statement-final-released.pdf)
Thread on BoLS: Profit down 37%, GW's stock drops by 24%. (http://www.lounge.belloflostsouls.net/showthread.php?40713-Games-Workshop-s-stock-loses-24-value-today-It-has-begun&p=386303&viewfull=1#post386303)
Is the recession to blame, or has GW been digging themselves a grave?
Hard to say, really. There's a lot of factors in play, such as no licensed games being released. It also may be that their profit margins are lower than we think they are, perhaps due to increased man hours getting this stuff cranked out.
It's not so much, "how much are they making compared to last year," as, "how much are they making compared to how much they need?"
If they lowered their prices, they would sell more and make more over all. It always seems to me that any chance to raise the price per unit and they jump on it. Then sell less because people can't afford it, then raise the price to compensate.
My favourite part in their report was when they mentioned the amount of stores they closed as part of their "store opening program"
Quote from: Naser Al-Istikhara Cyrus on January 16, 2014, 10:54:47 PM
My favourite part in their report was when they mentioned the amount of stores they closed as part of their "store opening program"
IS that on the Statement report? What page?
A lot of companies close stores, they said that they closed 20 and opened 27 - that's a success.
It may be that they relocated to different parts of town, or opened new stores in better places while closing them in other towns.
I think they need to close way more stores to be honest, if you look at how well other companies do without having many/any dedicated stores and instead make most of its sales through independent retailers or through online sales. I actually dont know any body that has bought something from a games workshop in so long and this includes a really big group of players.
http://natfka.blogspot.com.au/2014/01/gw-changes-stores-closing-and-armies-no.html
Saw this on a FB group I'm in and am forwarding it on here, seems relevant. Take with a grain of salt (it's from an interwebs site!)
Main points are:
-GW shutting down stores completely in Germany
-GW no longer supporting new models or rules for several unplayed fantasy armies
-GW no longer selling LOTR in store, instead is handed over to forgeworld
-Roughly 30% of stock sold in store will be transferred to online only
Again, take with salt, but it seems more believable than other things the internet has predicted.
Shutting down stores in Germany seems a little farfetched, but viable. Cutting a number of existing armies and handing over LotR to Forgeworld sounds far less so; letting individual armies die off one at a time would be more reasonable, but I don't think that they'd cut a huge swathe through their product line. And I personally feel that Forgeworld doesn't have the capacity to take over LotR like the way it's been suggested.
Looking in the comments section of that Natfka site, it appears many people believe that the stores in Germany aren't closing, but are instead coming under the banner of "GW Continental Europe", they;'re just ceasing to exist as "GW Germany".
Whether the comment is believable I don't know, but I sure think it makes more sense than simply leaving mainland europe. :P
- Will
Perhaps with the Beastmen, Tomb Kings etc - is that they are just going to not be stocked physically in the stores and you will have to order them in. What with all the new products i think some GW stores are running low on shelf space! Especially the smaller ones the size of a hobbit hole!
I cant see Lotr going to forgeworld as everything Lotr is controlled by new line and would brake their agreement.
Perhaps I mis-read the OP, but my understanding of the LoTR going to Forge World fiasco meant that actual floorspace in store was going to go to FW rather than production rights of LoTR mini's....
This would also make sense of my black shirt's comment about FW having a much bigger role in local stores. (He alluded to it being able to be purchased in the local stores (over their computers) but it could also be given actual floor space.
This kind of makes sense as the success of FW has soared with the release of the Heresy stuff...
Whilst they would need to step up the logistics of it, this could provide an interesting way of GW exponentially increasing the product line with popular miniatures and bring large amounts of cash flow through local stores again....
Here ends a very scattered thought with far to many abbreviations..
I know they will be selling and allowing fw to be used in store (I quote"now they have passed their Health and safety check". But my understanding is that except about 3-5 stores nationwide the minimum allowed support is given to to hobbit/lotr.