Network News: 2015 May-June GW Market Watch

Before we get to what he said,we should mention the stock markets and especially the Euro stock markets are in complete hysteria about whats going on between Greece and the European Union, whatever the outcome will have profound implications on global markets and GW won't be immune.

So, under that umbrella let us look at how GW stock is doing year-to-year so far.

GW had a very good summer last year, do to the confidence boost brought on by them paying out a dividend on time, something they missed at the beginning of the 2014. The stock then faded by the winter months and hasn't recovered since, sitting down 17% for the year 2015.

How does the GW stock trend look over the last 30 days, any different?

Over the last month the stock is down another 1.5%. I bet if you take the graph and removed the numbers and transpose over most European centric stocks you would find a similar trajectory, due to the Greek mess.

So, what about the upcoming annual financial report?

Well CEO Kevin Rountree has this to say about the upcoming report!

Following the close of its 2014/15 financial year Games Workshop provides the following trading highlights:

We expect the Group’s profit for the year to 31 May 2015 to be broadly in line with market expectations.

Over the year we have seen modest sales growth, at constant currency, in our core trade and mail order channels. We saw a small decline in our own stores due to continued difficult trading in Continental Europe following our restructuring last year. We saw expected declines in some non-core activities that are grouped with core activities in our reporting. The effect of these non-core activities and the continuing effects of unfavourable exchange rates mean that our reported sales are likely to show small declines in retail (c.5%) and trade (c.3%). Mail order growth was c.5%.

We will provide full and detailed information, including the effects of adverse exchange rates, at the time of our results announcement on 28 July 2015.

On the bright side, it looks like they anticipate no falling off a cliff...yet. The move to funneling customers to the website looks to be working, as Mail Order is the lone bright spot. What is interesting though are the references to exchange rates being the biggest cause for concern. If this is their internal conclusion, then GW doesn't see their current core strategies as the  problem. If this holds we cannot expect any changes in their behavior. Now the devils are in the details, and we won't know anything until July 28th. 

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