Games Workshop laid out the projected impact of tariffs on profitability, and plans for expense reductions and price increases as ways to adjust to higher costs in the company’s recent annual report for the fiscal year ended June 1, 2025.

Without efforts to adjust to the new U.S. tariffs, Games Workshop would experience a $16.1 million impact to profitability in its next fiscal year (all numbers converted from pounds to dollars at today's exchange rate), CEO Kevin Rountree said in the report, but reassured readers that it would be business as usual.  "Some of our trade partners, staff and customers are nervous," he wrote.  "So to be clear – it is business as usual for Games Workshop, once again a new normal has to be accepted."

Rountree said the company would try to make up the gross margin hit by increased efficiency, but acknowledged it would be a difficult task.  "This is not a simple task when we are already very efficient; it may take longer than one year," Rountree said.  He also indicated that retail prices on new products would go up, after an average 5% increase in the last fiscal year.

Despite the challenges the tariffs represent in the U.S., Games Workshop had another great year in North America. Sales were up 15% to $334.1 million. Trade sales through third-party retailers and distributors led the way with a 21% increase to $201.2 million; sales through Games Workshop stores were up 15% to $69.3 million; while Games Workshop online sales declined 8% to $39.8 million. Sales through Games Workshop stores were aided by the net 16 new stores opened in the period, bringing the North American total to 201 stores at the end of the fiscal year.

Overall, it was a record year for Games Workshop, with a $262.8 million after tax profit on $827.5 million in sales. The 30% jump in profits was greatly enhanced by a nearly $29 million jump in licensing revenue, behind the better-than-expected launch of the Space Marine 2 videogame.

One takeaway here was the continued emphasis by the company on keeping inventory thin at all levels, including at retail.  Based on that emphasis, it may be that the continued retailer complaints about fill rates (see "Tariffs Overshadow Growing Miniatures Businesss") are just the manifestation of the strategy, and a downside Games Workshop is willing to accept.