Fantasy miniature specialist Games Workshop today revealed a 15.4% increase in sales to £90m for the three months to 30 August 2020 compared to the same period last year.
Alex Hardy, Retail Analyst at GlobalData, a leading data and analytics company, offers his view on this news:
“While other retailers have used online to mitigate the damage of store closures, Games Workshop is one of the few that has been able to grow despite COVID-19 related restrictions. It has capitalised on the need in lockdown to indulge in hobbies, and fantasy gaming has proved an ideal form of much needed escapism for many, with a strong online community helping to drive sales.
“Games Workshop’s cost-conscious strategy, which includes not spending money on prime offices or shopping locations, or mass market advertising, has been critical to its profitability over the period. This, combined with a rise in demand for its products, has led to estimates of £45m for operating profit before royalty income, a 60.7% increase on last year. Share price rose by 18.5% in early morning trading, and while the board remain wary of the longer term impact of the pandemic, Games Workshop’s cost-saving measures ensures it is well positioned to weather the COVID-19 storm.”