Even though B&N’s second quarter profits fell 5 percent, which was better than initial predictions, some analysts remained unimpressed with the retailer’s report, not to mention share prices falling 84 cents (or 4%) to $20.11 in yesterday’s trading. Standard & Poor’s Equity Research Retail Analyst Michael Souers kept his $16 price target and “strong sell” recommendation on the shares: “Facing long-term challenges such as a secular decline in adult readership levels as well as an increasing shift toward eBooks, we think shares are overvalued,” he said in a note. B&N also delayed updating its annual forecast until approximately October 1, […]
Earnings Reports
B&N Sales and Outlook Fall in Second Quarter, But Beat Expectations
For the second quarter ending August 1, total sales for Barnes & Noble declined 5% to $1.2 billion. Store sales were off 5%, to $1 billion, while sales through Barnes & Noble.com increased 2% to $102 million. Comparable store sales fell 6.9% for the quarter, within the Company’s guidance for a decrease of 5% to 7%. Net profit fell to $12.3 million, or 21 cents per share, from $16.8 million, or 27 cents per share last year. Excluding a benefit from an insurance settlement, net income was 14 cents per share. Analysts polled by Thomson Reuters, on average, had expected […]
Book Comps, Overall Results Fall for Hastings
Second quarter sales at Hastings fell $8.5 million, or 6.7 percent, to $117 million, while net earnings dropped to $396,000, compared to net earnings of $660,000 in last year’s second quarter. Same-store sales for books also fell 1.7 percent for the quarter, primarily as a result of lower sales of new hardcovers, new trade paperbacks, and magazines, partially offset by strong sales of used and value books. Release
Sales Slip at S&S As Income Is More than Halved
Sales fell 2.5 percent at Simon & Schuster in their fiscal second quarter, down $4.6 million at $181 million for the period, while OIBDA dropped by more than half at $8.1 million, down from $17 million a year ago. Straight operating income was $6.1 million, down from $14.6 million a year ago. The company says the sales decline was “principally reflecting the unfavorable impact of foreign exchange rate changes,” while the earnings hit was “largely driven by higher author royalties and restructuring charges of $2.2 million related to headcount reductions partially offset by lower employee-related expenses resulting from cost-savings initiatives.” […]
Summer Report Card
With earnings results announced from most of the publicly-reporting companies with trade publishing divisions, we’ve assembled a little chart of the recent summer school grades. The primary drivers of success in the current marketplace are either a) Stephenie Meyer or b) currency exchange. When underlying businesses are strong most companies will tell you that foreign exchange doesn’t matter that much to them but in a declining market the impact–both positive and negative–becomes more prominent. PublishersLagardere +10.4% (FX was marginal; rest of year comp will be lower due to Stephenie Meyer)Harlequin +8.7% (all FX)S&S -2.5% (“principally” FX)Penguin +11% […]
Harper In the Red for Q4 As Sales Fall Over 20 Percent
HarperCollins swung from profit of $28 million a year ago to an operating loss of $4 million for their fiscal fourth quarter, including a $3 million impairment/operating charge, finishing the year with an operating loss of $16 million (including $33 million in impairment/operating charges), compared to $160 million in operating income a year ago. (They still show “adjusted operating income” of $17 million for the year.) News Corp. says the deterioration is “largely due to the weak retail market.” Sales for the fourth quarter fell $72 million at Harper, down 20.5 percent, at $278 million. Full-year sales for the publisher […]