Waterstones’ primary holding company recently reported full fiscal year results through the end of April 2023, showing increased sales but much lower profits, following the acquisition of Blackwell’s. Sales reached £452.5 million, up from £400 million in the previous fiscal year — but operating profit fell sharply to £13.9 million, down from £57.6 million the prior year. The lower earnings included 15.4 million in “exceptional items.” The company says they absorbed a £7 million impairment charge on Blackwell’s carrying value after acquiring it in August 2022. The report says that, “disruptions to the distribution centre, caused by the implementation of […]
Booksellers
“Digital Disruptions” Continue to Hit Indigo’s Sales
Indigo released its earnings report for the quarter ended December 30, reporting sales of $370.6 million Canadian ($272.3 million USD), down 12 percent from $422.7 million in the same period the year before. The company continues to attribute the downturn to “disruptions throughout 2023” that actually happened before the reporting period, including a cyber attack last February and “the pre-mature launch of a new digital platform.” When asked on a call with investors on Friday, CEO Heather Reisman declined to share what the problems with the digital platform were. Of the online business, she did say, “it has certainly stabilized […]
Bookstore Sales Fall At WH Smith
UK retail chain WH Smith released a preliminary trading update for the period ended January 20, reporting overall sales up 8 percent. The upswing is driven by the company’s travel stores, which grew 13 percent. High street bookstore sales, on the other hand, fell 4 percent from last year, as expected. “We maintained good stock availability and we exited Christmas with a clean stock position,” the company said in a release. “We are on track to deliver our targeted full year cost savings of £10m.” “The Group is trading well and is in its strongest ever position as a global […]
Barnes & Noble Education Ekes Out Gains
The company’s fiscal second quarter report oozes with high fives as the company celebrates what they term an increase in sales, up by what we technically call a “smidgen,” at $610.4 million, compared to adjusted sales of $608.6 million a year ago. (Their actual sales a year ago were $617.1 million — which includes $8.5 million from their Digital Student Solutions segment, which was sold in May.) Net income did rise, at $24.2 million, up $2 million from a year ago (with income from continuing operations up less, gaining about $700,000). Comparable store course material sales rose by 5.8 percent, […]
Indigo’s Q2 Falls Below Last Year’s Strong Result
Indigo released results for the second quarter of their fiscal year, ended September 30, reporting $207 million in sales, down 12 percent from the previous year, and a loss in adjusted EBITDA of $(13.8) million, compared to $(10.6) million. Net loss during the quarter was $(22.4) million, compared to a net loss of $(15.9) million in the previous year. The company cites consumer “price sensitivity” as a reason for the drop—because people came out for discounts during promotional events—and a stark comparison to last year, which was the highest ever in merchandise sales. The company also launched their new ecommerce […]
WH Smith High Street Sales Fall Slightly
WH Smith announced preliminary results for the year, ended August 31, with sales up 28 percent to £1.79 billion. Trading profit, driven by the Travel division, was up £74 million to £164 million, and group profit before tax was £110 million, compared to £63 million in 2022 High street sales were £469 million, down from £473 million, with trading profit falling £2 million to £43 million, “in line with expectations.” The company closed 13 High Street stores in the period, bringing their total to 514. They say they are focused on efficiency and cost management, with savings of £15 million […]