UK retailed WH Smith issued a brief trading update, covering the awkward period of the 18 weeks ending July 1 (e.g. roughly a third of the year). High street bookstore sales were down 14 percent compared to the norm in fiscal 2019 — or, as they like to put it, 86 percent of the previous level. Second quarter sales were down 16 percent, and first quarter sales were down 12 percent on the same comparison basis. “This performance reflects high street footfall which remains below pre-pandemic levels.” Their travel stores are recovering a little, though still suffering badly, at 48 […]
Earnings Reports
We’re Running Out of Ways of Telling You Barnes & Noble Education Had A Bad Quarter
Covid was hard on Barnes & Noble Education, which had been struggling even in normal conditions. Sales for the fourth quarter ending May 1 were $223 million, down 13 percent from $257 million a year ago (which was an unusual 14-week quarter), already a low bar given the impact of Covid last year. Two years ago, a more normal fourth quarter had sales of $334 million. The operating loss was a big ($59) million, worse than ($52) million a year ago. For the full year, sales fell to just $1.434 billion — compared to $1.851 billion in the previous year. […]
McGraw Hill Reports Q4
In advance of the closing of their pending sale of McGraw Hill to Platinum Equity, the company reported fourth quarter and full-year results. As of March 31, their total debt had a face value of $2.159 billion. They paid debt service of $227 million in the fiscal year, and ended the year with $354 million of cash. The risk factors section notes plainly, “We are a leveraged company that has substantial indebtedness.” Higher ed sales were $649 million in the year, and K-12 sales were $584 million. Like HMH, Pearson and other education companies, McGraw Hill touts its digital transformation […]
Wiley Reports a Strong Fourth Quarter, with a Favorable Outlook
Wiley reported fourth quarter and fiscal year results for the period ended April 30, with sales of $536 million, up from $474.6 million, a 13 percent increase, including $14.8 million in foreign exchange variance and acquisitions. Operating income was $51.2 million, improved from a loss of ($170.7) million a year ago, and adjusted EBITDA was $112.7 million, up from $92.8 million. Academic & Professional Learning (which includes trade books) grew 15 percent as reported, “driven by strong growth in Education Publishing and trade publishing, accompanied by further recovery in corporate training.” For the full year, sales were $1.94 billion, up […]
Waterstones Sales Fell to New Low
Waterstones filed a belated report for their fiscal year ending April 25, 2020, including only the earliest days of the pandemic, with sales falling £17 million to £376 million — the lowest level yet following a long period of general decline — down 4.3 percent from £393 million in the prior fiscal year. Operating profit was up modestly at £32.6 million (compared to £29.7 million), but pre-tax profit fell by £4 million to £22.5 million, down 15 percent. The company notes that Covid-19 “has had, and continues to have, a significant adverse impact on Waterstones.” They add that, “Footfall and sales […]
Bloomsbury Acquires Head of Zeus for £8.45 Million, As Sales Rose 14 Percent for the Year
Bloomsbury announced the acquisition of Head of Zeus, founded nine years ago by Anthony Cheetham, for £8.45 million. They paid £5.5 million in cash, with another £1.1 million payable post completion, “subject to working capital and other considerations,” and up to £0.75 million in deferred, contingent consideration. They also paid off loans of £1.1 million. In 2020, Head of Zeus had sales of £8.6 million and profit before tax of £0.3 million. Head of Zeus will operate as an independent imprint in Bloomsbury’s consumer division. Bloomsbury ceo Nigel Newton says in the announcement, “Bloomsbury will be able to provide the […]