At Canada’s dominant retailer Indigo, sales for the second quarter fell 2 percent to $205 million (CA), with net earnings “down slightly” at $3.2 million. CEO Heather Reisman says “we were pleased with the bottom line results given today’s challenging economic climate.” Same-store sales rose 2 percent at the Indigo and Chapters superstores, and 7.4 percent at the small-format Coles stores. But online sales decreased 19.8 percent to $21.1 million, attributed entirely (and then some) to the comparison to last year’s numbers for the release of the final Harry Potter Book.Release
Booksellers
Amazon's Quarter Is Fine, But They're Braced for a Grim Finale
Amazon.com held up well enough in their fiscal third quarter, which ended September 30, recording another healthy increase in sales of 31 percent to $4.26 billion (with an $80 million boost due to favorable currency exchange). Operating income rose 26 percent to $154 million. The sales number was in line with analysts’ expectations but the income figure fell well short. Of greater concern to markets is Amazon’s reduced guidance for the fourth quarter. Sales are projected to fall between $6 billion and $7 billion (an increase of between 6 percent and 23 percent), and operating income is projected to range […]
WH Smith: A Bookseller Whose Stock Actually Rises
WH Smith presented the market with a pleasant surprise, reporting sales of 1.352 million pounds, up 4 percent for the year, with profits rising 15 percent to 76 million pounds, above analysts’ expectations. Like-for-like book sales were “flat excluding the impact of last year’s Harry Potter release” (aka “down”). “Gross margin was up year on year. We were pleased with our share performance versus the general high street,” the company said. And among their travel stores, “extended books charts, improved display of chart titles and strong promotions have contributed to our books performance and we have also seen an encouraging […]
As in US, Waterstone's Sales Fall
Citing a “tough consumer environment” and in particular a “a weaker book market,” HMV said in a brief trading update for the 18 weeks weeks ending August 30 that same-store sales at the Waterstone’s chain fell 4.3 percent, and declined 1.7 percent after you take out Harry Potter. Total sales at Waterstone’s fell 5.9 percent for the period. The chain launched the Sony Reader yesterday with about 7,000 titles available (they expect to have about 20,000 titles by the end of the year) and has enrolled 1.8 million loyalty card members.Statement
Calmer Heads on Borders' Prospects
After the stock market’s enthusiastic reception to Borders quarterly report showing a big sales drop and a continuing loss, analysts who cover the stock sobered up a bit. David Schick at Stifel Nicolaus & Co. kept his “hold” rating saying Borders “has yet to prove it can stabilize these metrics and the top-line, let alone grow.” But he did note, “with constant, and really mounting, pressure from online delivery, online e-books, and retail discounters, (Borders) clearly has a tough environment in which to turn around,” he said. “In a sense, that makes margin stabilization more impressive.” Goldman Sachs, which always […]
Borders Sales Fall, But Debt Is Trimmed
Wall Street seems to think that Borders can survive following a second quarter report showing weak sales but a reduced operating loss and slimmer debt-load, with shares up twenty-five percent over yesterday’s close in early trading. (That said, the stock price is still below the strike price of the options granted to Pershing Square earlier this year when they provided the company with an emergency loan.) Sales from continuing operations in the fiscal second quarter actually fell more than expected, reaching just $749 million, but the company’s loss from continuing operations of $11.3 million (19 cents per share) was much […]