For the second quarter ending August 1, Books-A-Million’s total sales decreased 0.7% to $122.4 million while comparable store sales were dropped 4.9%. But the retailer posted an increase in profits (as they did in Q1) with net income rising to $1.5 million, even factoring in a non-cash after-tax impairment charge of $0.2 million to reduce the asset carrying value of certain store locations. In the accompanying statement, Chairman and CEO Clyde Anderson attributed the quarter’s “challenging sales environment” to there being no comparable book to Stephenie Meyer’s Breaking Dawn, released at the same time last year. Nonetheless, Anderson pointed to […]
Earnings Reports
Analysts Remain Unimpressed with "Better Than Expected" B&N Earnings Report
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, […]
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% […]