Post by PitYak Studios on Jul 28, 2005 19:00:36 GMT 12
Lord of the Rings spells doom and gloom for figure maker
28 July 2005
The "boom and bust" stemming from New Zealand's Lord of the Rings film trilogy has spelled doom and gloom for a global maker and seller of fantasy figures for battle games, Games Workshop.
The company's chief executive Tom Kirby told the Scotsman newspaper in Edinburgh: "For the last two years we have been concerned that, for Games Workshop, the Lord of the Rings business might create a bubble effect which might not be sustainable.
"We have to confess we underestimated the impact which this would have on our sales and profits in the last quarter of this financial year," he said.
"The downturn in sales in the final quarter has been most evident in Europe and the UK, territories which have experienced particularly strong growth in recent years, buoyed especially by sales of the Lord of the Rings products."
The group's Asia Pacific business comprises Australia and New Zealand, where there are now have 27 stores, down from 28 last year.
"Our sales in Australia and New Zealand in local currency were flat year on year, the Lord of the Rings effect being less significant than in the UK or Continental Europe," said Mr Kirby.
The firm, which has 327 stores worldwide, including three stores in Auckland and Wellington - said turnover fell to 136.6 million pounds($NZ352.5 million) from 151.8 million pounds ($NZ391.7 million) the year before, while profits slid from 19.9 million pounds to 13.9 million pounds.
All three New Zealand store managers were yesterday at a conference in Australia. Earlier this year, the group said it was unlikely to meet market forecasts for sales of between 151 million pounds and 162 million pounds for the year to May 29.
The group said that all areas of its operation had reduced sales for the year.
Mr Kirby said that in Britain, where there are some 120 stores, it was a "particularly tough" year, but the group had simplified its management structure to improve decision-making and implementation in the business, and to "ensure that the balance between customer-facing and back office roles remains healthy".
He confirmed that, in the short term, the trading prospects remained "challenging".
"It is inherently difficult to predict when our sales will again re-establish their historical growth rates once we have put the Lord of the Rings sales `bubble' behind us," he said.
28 July 2005
The "boom and bust" stemming from New Zealand's Lord of the Rings film trilogy has spelled doom and gloom for a global maker and seller of fantasy figures for battle games, Games Workshop.
The company's chief executive Tom Kirby told the Scotsman newspaper in Edinburgh: "For the last two years we have been concerned that, for Games Workshop, the Lord of the Rings business might create a bubble effect which might not be sustainable.
"We have to confess we underestimated the impact which this would have on our sales and profits in the last quarter of this financial year," he said.
"The downturn in sales in the final quarter has been most evident in Europe and the UK, territories which have experienced particularly strong growth in recent years, buoyed especially by sales of the Lord of the Rings products."
The group's Asia Pacific business comprises Australia and New Zealand, where there are now have 27 stores, down from 28 last year.
"Our sales in Australia and New Zealand in local currency were flat year on year, the Lord of the Rings effect being less significant than in the UK or Continental Europe," said Mr Kirby.
The firm, which has 327 stores worldwide, including three stores in Auckland and Wellington - said turnover fell to 136.6 million pounds($NZ352.5 million) from 151.8 million pounds ($NZ391.7 million) the year before, while profits slid from 19.9 million pounds to 13.9 million pounds.
All three New Zealand store managers were yesterday at a conference in Australia. Earlier this year, the group said it was unlikely to meet market forecasts for sales of between 151 million pounds and 162 million pounds for the year to May 29.
The group said that all areas of its operation had reduced sales for the year.
Mr Kirby said that in Britain, where there are some 120 stores, it was a "particularly tough" year, but the group had simplified its management structure to improve decision-making and implementation in the business, and to "ensure that the balance between customer-facing and back office roles remains healthy".
He confirmed that, in the short term, the trading prospects remained "challenging".
"It is inherently difficult to predict when our sales will again re-establish their historical growth rates once we have put the Lord of the Rings sales `bubble' behind us," he said.
