Games Workshop more than doubled its profits in its fiscal year ended May 30th to a pretax profit of £16.1 million, despite sales that were up slightly in pounds and down around 3% in constant currency (to £121.8 million).  Profit increases came from higher prices and lower costs.  This is a second year of improving performance (see “Games Workshop Improves Performance”). 

Sales declined despite opening 27 more stores and expanding Web sales.  Sales declines were in Continental Europe and Australia; the UK and North America grew (around 3%, to £31.3 million). 

One area of costcutting was in Games Workshop store personnel.  Over half the stores in North America (47 out of 84) are now what the company calls “one man stores” (see “Games Workshop Tests One Man Stores”), which have fewer open hours and can serve smaller markets.  The over-all store count in North America went up slightly (from 81 to 84) in the last year.  More stores are planned for North America; almost all will be in the smaller store format.

Plans for the current fiscal year include a new sales training program, originally developed in Australia, for all the company’s store employees; performance pay for retail managers; and the relaunch of Warhammer Fantasy, which began last summer.

GW chairman Tom Kirby has been working in the North American market for three weeks a month, because “development of management talent has lagged” here.