Games Workshop, which makes model figures for fantasy games, has warned that its earnings will miss estimates, sending its shares down nearly 10%.
Fantasy games and modelling are popular hobbies in the UK
The company said that demand over the Christmas holiday period did not pick up as expected and will result in sales and profits falling short of targets.
It added that revenue fell 4% to £54.8m in the six months to 26 November, while pre-tax profits gained 7% to £127,000.
Games Workshop shares were 39.5 pence lower at 367.5p in lunchtime trading.
Analysts said that Games Workshop, which makes figurines for games such as the Lord of the Rings, was recovering, even if the rate of improvement was slower than many people had forecast.
"The detail is encouraging," said Iain Daly, an analyst at Bridgewell. "But the pace of recovery is slower than we had been looking for."