Sales fell 10 percent in Wiley’s professional/trade segment in their fiscal first quarter, at $90 million (with a third of that decline due to currency exchange). But the company says “retail market conditions appear to be stabilizing, and major accounts are replenishing inventory. The second quarter began positively, as reflected in strong August sales.” Contribution to profit also declined 10 percent, at $16 million.
Companywide, sales of $388 million were down three percent, while income before taxes of $37.1 million was up three percent. Higher education was the only segment with sales growth in the period, rising 12 percent to $69.2 million.
In the announcement, ceo William Pesce says: “Higher Education had a solid quarter in all regions. STMS reported strong journal subscription revenue, partially offset by softness in books, advertising, and backfiles. As expected, P/T experienced a down first quarter, but began the second quarter strongly, as reflected in double-digit revenue growth in August. Retail markets appear to be stabilizing, and inventory is being replenished by major accounts.”