The "boom and bust" stemming from New Zealand's Lord of the Rings film trilogy has spelled doom and gloom for a global maker and seller of fantasy figures for battle games, Games Workshop.
The company's chief executive Tom Kirby told the Scotsman newspaper in Edinburgh: "For the last two years
we have been concerned that, for Games Workshop, the Lord of the Rings business might create a bubble effect which might not be sustainable. We have to confess we underestimated the impact this would have on our sales and profits in the last quarter of this financial year.
"The downturn in sales in the final quarter has been most evident in Europe and the UK, territories which have experienced particularly strong growth in recent years, buoyed especially by sales of the Lord of the Rings products."
The group's Asia-Pacific business comprises Australia and New Zealand, where there are now 27 stores, down from 28 last year.
"Our sales in Australia and New Zealand were flat year on year, the Lord of the Rings effect being less significant than in the UK or Continental Europe," said Kirby.
The firm, which has 327 stores worldwide, including three stores in Auckland and Wellington - said turnover fell to 136.6 million ($352.5 million) from 151.8 million the year before, and profits slid from 19.9 million to 13.9 million.
All three New Zealand store managers were at a conference in Australia yesterday. Earlier this year, the group said it was unlikely to meet market forecasts for sales of between 151 million and 162 million for the year to May 29.
The group said that all areas of its operation had reduced sales for the year.
- NZPA
