Fantasy wargames specialist Games Workshop today warned that annual profits would be lower than expected after a disappointing Christmas.
Shares in the model-soldier retailer closed nearly 12% down at 372.5p after it reported that an expected festive sales boost had failed to materialise.
In the six months to 28 November, sales were running down 4% and the company said difficult trading conditions since that time meant it was unlikely to make up lost ground. "The board of Games Workshop currently believes that, as a result of reduced volumes, pre-tax profits … are unlikely to meet current market consensus estimates," it said in a statement.
The specialist retailer, which manufactures and sells figurines for tabletop gaming franchises such as Warhammer and Lord of the Rings, said its costs remained under control and that cash generation remained healthy.
Peel Hunt analyst Charles Hall cut his profit forecast for the retailer by £5m to £12m but said the retailer still had "excellent long potential", highlighting a "one-man" store format that offered a low-cost route to expansion.