Sales at Lagardere Publishing of 433 million euros fell 6.5 percent in the first quarter (ending March 31), attributed to the “expected erosion” in sales of Stephenie Meyer books. Digital book sales, however, were “buoyant,” comprising “some 8 percent” of US revenues in the first quarter. The company says that “the current pace of growth in digital books – in particular with the arrival of the iPad” could wind up having “a very slightly positive effect” on their full-year earnings. In the short term, the publication of Meyer’s novella The Short Second Life of Bree Tanner on June 5 “is […]
Booksellers
Waterstone's Same-Store Decline "Improves" to -4.8 Percent
In a preliminary report of annual results, Waterstone’s parent HMW is claiming that bookstore sales are improving, with same-store sales for the 16-weeks ending April 24 down 4.8 percent–which is indeed better than the full-year same-store decline of 6.2 percent, and also an improvement over the poor Christmas holiday comp decline of 8.9 percent. Overall bookstore sales for the year are down 6 percent as well. It’s the second straight annual decline for the chain. Though they did not report actual figures today, based on last year’s numbers, sales will be down to approximately 515 million pounds for the year. […]
Amazon Posts $7 Billion Quarter, But Low Guidance Worries Market
Amazon reported first quarter sales after the close of the market yesterday of $7.13 billion, up a sizable 46 percent from a year ago and ahead of consensus expectations by over $140 million. Net income of $299 million increased even more, by 68 percent (at 66 cents a share also well above estimates of 61 cents a share). North American media sales were up a mere 22 percent, at $1.597 billion, now well exceeded by international media sales, which rose 29 percent to $1.833 billion. Growth in electronics is really driving the company’s overall gains. The Kindle store now officially […]
Sales Fall 4 Percent at WH Smith; Publishing Remains Soft for Courier
The UK’s WH Smith reported results for the six months ending February 28, with high street sales of 503 million pounds down 4 percent, both in absolute terms and on a comp-store basis. Books as a category were also down 4 percent compared to a year ago. The company says “the books market was soft during the key Christmas period, but performance varied by sub-category with the poor publishing schedule in non-fiction acting as a key driver behind the market decline.” Nonetheless, they insist that “we continue to implement our strategy to build on our authority as a popular book […]
Borders May Try to Raise New Equity, While Paying Steep Interest On New Loan
Borders filed details on their new credit agreements with the SEC along with filing their formal quarterly report. They disclose that the new $90 million term loan carries a minimum interest rate of 14.75 percent. Additionally, Borders needs to raise at least $25 million from the sale of new stock shares by May 15, or else there will be a $10 million reserve against the borrowing base of that term loan. (Even with yesterday’s sharp rise in the stock, Borders still has a current total market cap of about $150 million.) Good old Pershing Square is protected in the case […]
Borders Finishes With A More Profitable Quarter, Even As Sales Fall Over 13%
With new financing in place, Borders also reported fourth quarter and full-year earnings. The company made $59.9 million (91 cents a share) from continuing operations in the final quarter, much improved from $28.9 million (48 cents a share) a year ago, though adjusted EBITDA fell from $132.6 million to $91.3 million. Their debt net of cash at the end of the quarter was $245 million, a $37.6 million reduction from a year ago. Comp-store sales were about as horrible as their holiday report indicated, down 14 percent in the Borders superstores, also declining 14.4 percent for the full year. Fourth […]