In Borders’ extensive statement of financial affairs filed with the bankruptcy court last week, already covered here in general, we note that the company appears to have revised downward their estimate of sales prior to declaring bankruptcy. The statement puts fiscal 2010 sales at $2.177 billion, which is 5 percent lower than the sales of “approximately $2.3 billion” the company reported when they filed for Chapter 11 protection in February. That means our initial estimate of the decline in sales during 2010 was too low; by the new figures, Borders’ sales fell at least 17 percent over the past year. […]
Booksellers
Earnings, Comp Sales Slide for BAMM
Fourth quarter sales at Books-A-Million fell 6.7 percent on a same-store basis and 2.6 percent overall to $153.1 million percent, but net income of dropping by nearly half to $6.8 million, compared to $11.9 million a year ago. For the full year sales of $495 million were down 2.7 percent, declining 4.9 percent on a same-store basis, and net income dropping to $8.9 million. The board authorized a quarterly cash dividend of $0.05 per share. Chief Executive and President Clyde Anderson said in a statement that the declining fiscal year results “illustrate a dynamic and rapidly changing retail environment for […]
Briefs: HMV Warns It May Violate Banking Covenants; Debts Owed to REDGroup Creditors; Lewis Sued for Defamation by Asset Manager; and More
As speculation mounts over whether minority stakeholder Alexander Mamut will buy Waterstone’s, the chain’s parent company HMV warned investors this morning that it expects to violate banking covenants as a result of full-year profits falling below expectations. While HMV said it was in talks with lenders to amend its credit loan agreements, which remain available, chief executive Simon Fox admitted in a statement that “trading conditions remain tough, reflecting a difficult consumer environment as well as the changing markets in which we operate.” He added that HMV “is adapting quickly to respond to these external factors, and we are confident […]
Sales Grow But Indigo Profits Still Drop in Third Quarter
Third-quarter performance at Canada’s retailing giant Indigo looks reminiscent of Barnes & Noble’s trajectory, with ebooks, ereaders and online sales helping to lift sales while also weighing on expenses. Indigo’s revenues rose 14 percent to $387.6 million (CA), beating projections, but net profit of $30.2 million (or C$1.19 a share) was $4 million lower than a year ago, which was less than analysts expected. Superstore comps increased 2.6 per cent while smaller-store comps dropped 0.8 percent from last year’s levels, and the company’s online division was up 6.5 percent from a year ago. As with the previous quarter, digital investments […]
Amazon Says Kindle Sales Exceed Paperbacks–and Coincidentally, Profits Fall Even As Sales Rise Over $3 Billion
Amazon reported sales of $12.95 billion for the fourth quarter, up 36% from a year ago. But operating income actually declined, even with almost $3.5 billion in extra revenue, down $2 million at $474 million. The company says they sold “millions of third-generation Kindles” in the quarter, and indicates “Kindle books have now overtaken paperback books as the most popular format on Amazon.com” and “this milestone has come even sooner than we expected – and it’s on top of continued growth in paperback sales.” The company adds that, “since the beginning of the year, for every 100 paperback books Amazon […]
Positioning Aside, Sales Fall at WH Smith High Street Stores By A Good Amount
The UK’s WH Smith presented weak sales data that people are working hard to put a positive gloss on. Same-store sales at their High Street stores were down 7 percent for the eight weeks ending January 22 (so holiday sales, sort of) and down 6 percent for the most recent 21 weeks. The company says that “excluding entertainment” product, same-store sales were down 3 three percent. They say they are “rebalancing” their store mix to focus books, stationery and candy. The Bookseller says retail analysts were told once you isolate book sales, they fell 2 percent on a same-store basis […]