Games Workshop has released financial statements for its fiscal year, which ended in June, and sales declined for the third year in a row, falling from 115.2 million pounds in 2006 to 111.5 million in fiscal 2007.  The company went from a profit of 4.2 million pounds in 2006 to a loss of 2.1 million pounds in 2007, though a charge of 4 million pounds for a cost reduction program that includes the closing of some 30-odd stores (see 'Games Workshop to Close 35 Stores') should provide considerable savings in years to come.  While overall sales declined there were some bright spots, notably the performance of GW's subsidiary Sabertooth Games, whose sales more than doubled from $1.1 million in 2006 to $2.3 million in 2007 thanks to the success of its Universal Fighting System trading card games.  Another bright spot was the fact that sales didn't decline more despite a crackdown on the operations of Internet discounters.

The vertically-integrated Games Workshop, which owns and operates 348 retail stores (24 were opened and 11 were closed during the year), saw its sales via its own stores rise from 48% to 49% during the year.  Direct online sales also gain a percentage point of share going from 10% to 11%, while sales through independent retailers declined from 42% in 2006 to 40% in 2007. 

Sales in the Asia Pacific territories (including GW strongholds Australia & New Zealand) and the U.K. were up by 600,000 pounds each, while sales in North America declined by 1.6 million pounds and European figures declined even more precipitously falling by 2.9 million pounds.

Games Workshop ended the year with 82 company-owned stores in the Americas, but plans to close 17 of them during the current (2008) fiscal year.  Games Workshop is closing it stores that are located outside of major metropolitan areas in the Americas and has decided to service other areas via independent retailers.  The company was proud of the fact that the number of independent retailers carrying Games Workshop products in the Americas grew from 729 active accounts at the end of 2006 to 821 at the end of fiscal 2007.

While Games Workshops sales declined from the heights reached during the Lord of the Rings-stimulated fantasy boom, they remain higher than they were in the pre-LOTR era, and the company's declining share price might possibly make the company a tempting takeover target for a private equity firm.