Scholastic reported earnings results for the second quarter ended November 30, with sales of $588 million, up 12 percent from $524 million last year, driven by “strong results” in Children’s Book Publishing and Distribution and gains in Book Fairs. Operating income was 20 percent ahead of last year, at $100.1 million, and adjusted EBITDA was $122.3 million, a 14 percent gain. The company credited these results to higher sales and profits in the Children’s Books segment, as well as “cost containment” related to inflation. Trade sales, which had reached all-time high levels, dipped 4 percent to $120 million due to […]
Earnings Reports
Wiley Aims to Reduce Costs as Earnings Fell in Q2
Wiley released its earnings report for the second quarter ended October 31, with sales of $515 million, down 3 percent from last year. Operating income was down 22 percent to $57.4 million, and adjusted EBITDA fell 3 percent to $123.8 million. Net income was $38.2 million, compared to $55.9 million in the prior year. Earnings declined in part due to $14 million in restructuring charges “related to workforce actions and real estate optimization.” In a presentation to investors on Wednesday, the company said it is “accelerating [a] cost reduction program, including targeted workforce actions, general hiring freeze, real estate optimization, […]
BNED’s Big Quarter Was Not So Big
Barnes & Noble Education reported results for their big fiscal second quarter ending October 29, usually their biggest sales period following the opening of schools, with revenues of $617 million, down 1.6 percent from $627 million last year, and still well below pre-pandemic levels ($772 million in 2019 and $815 million in 2018). That’s well short of analysts’ expectations of $675 million in sales. Net income was $22 million, compared to $22.5 million in the same period in 2021, and follows one of their biggest losses ever in the first quarter, when the company was down ($52.7 million), and puts […]
Retail Rebounds at WH Smith, Indigo
UK retailer WH Smith released their year-end earnings report for the period ended August 31, and the company stated it “is now in its strongest ever position as a global travel retailer” with sales that not only rebounded post pandemic, but reached their highest level ever: overall sales of £1.4 billion were up 58 percent over last year. Profit before tax was £63 million compared to a £(116) million loss last year. High street sales, however, remain well below were they were pre-pandemic (after declining for a decade), registering £473 million, down (2.5) percent from last year’s £485 million. Trading […]
Harper’s Sales Fell Sharply On Big Returns and Lower Orders From Amazon
The effect of Amazon’s much talked-about “reset of its [book] inventory levels and rightsizing of its warehouse footprint” is front and center in News Corp.’s fiscal first quarter account of HarperCollins’ performance, and the impact is clear. Sales at Harper fell $59 million in period, down 11 percent, to $487 million. The changes at Amazon “resulted in lower order volume and higher returns, despite consumer sales data remaining consistent with prior quarters.” Foreign exchange, due to the strong dollar, cost the company $22 million in the quarter as well. Backlist sales comprised about 65 percent of sales in the quarter, […]
Storytel Improves EBITDA Margin, Stock Rebounds
After a brief preliminary report a month ago, Storytel released their full third quarter earnings report on Thursday. As announced in October, sales were up 27 percent to SEK742 million ($70.4 million). Newly reported today, earnings were SEK59.2 million, with “positive cash flow” and a positive EBITDA margin of 7.3 percent, “driven by the strategic shift to focus on profitable growth, the acquisition of Audiobooks.com as well as related restructuring of the organization.” CEO Johannes Larcher underscores that, “Refocusing the company on our home markets in the Nordics and a limited number of other priority markets, with a clear focus […]