Ahead of their formal annual report in June, Bloomsbury announced a “second upgrade” in expectations, after “exceptional” February sales in consumer books, led by Sarah J. Maas’ just-published A Court of Silver Flames. Due to the pandemic the company never issued formal guidance for the fiscal year, which ended February 28; rather, they have benchmarked against “market expectations.” Against current estimates of sales of £171 million and profit before taxation and highlighted items of £14.8 million, the company expects higher sales, and “significantly” higher earnings. Given that, Bloomsbury has “repaid the temporary salary reductions for staff,” taken for three months […]
Earnings Reports
Quarto Holds onto Modest Profit Despite 7% Sales Decline in 2020
Quarto reported earnings for the year ended December 31, 2020, with sales of $127 million, down from $136 million, a decline of 7 percent. US sales of $76 million were down by $4 million, as were non-UK sales in Europe of $17.4 million. Operating profit was $9.3 million, up modestly from $8.8 million, due to lower administrative expenses. Pre-tax profit of $6.6 million was up from $3.8 million a year ago, primarily due to lower finance costs after they paid down a portion of their debt. At noon in London, the stock was up more than 20 percent from previous close on the […]
Scholastic Trade Up Slightly, While Book Fairs Weigh Heavily on Overall Results
Scholastic reported earnings for the fiscal third quarter ended February 28, with sales of $278 million, a decrease of $96 million, down 26 percent. The decline was mainly due to lost sales in its big book fair business (where sales of $27 million were down 73 percent, a $73 million shortfall) as many schools remained closed. The operating loss excluding one-time items was $(11.9) million, compared to a loss of $(16.8) million a year ago, thanks to “the company’s restructuring and cost saving initiatives, as well as the receipt of certain COVID-related wage and rent subsidies.” One-time expenses included asset […]
Barnes & Noble Education’s Struggle Continues; WH Smith Improves Its Burn Rate
Barnes & Noble Education reported earnings for the third fiscal quarter ended January 30, with sales of $412 million, compared to $503 million last year, a decline of 19 percent. While sales were better than analysts’ expectations, earnings were worse, with net loss of $(48) million, down from $(2) million last year. The loss included pre-tax impairment of $27.6 million, “on certain store-level long-lived assets in the retail segment.” Retail sales decreased by $70.3 million in the quarter, or 15.4 percent. Comparable store sales were down 20 percent overall, with the biggest decline in trade books, down 61 percent. Textbook […]
Pearson Sales and Profit Down in 2020 as Management Predicts a Return to Growth
Following on their January trading update, Pearson announced full earnings for 2020. Sales were £3.4 billion, a decrease of £472 million, or 10 percent, as reported in January. Of the decline, £55m was due to scope changes, and £31 million from negative currency impact. Operating profit was £411 million, up from £275 million, but for 2020 the adjusted numbers are more revealing, since the statutory numbers reflect the £531 million gain from selling the company’s final 25 percent stake in Penguin Random House, which generated a pre-tax profit of £180 million. The year also saw lower restructuring costs, as the […]
Wiley’s Sales Near Flat, Earnings Down in Q3
Wiley reported third quarter sales for the period ended January 31 of $483 million, up from $467 million, or 3 percent on the topline. But that includes $7.6 million in favorable foreign exchange and added sales from the big Hindawi acquisition. Net income for the quarter was $22.2 million, down from $35 million, while adjusted EBITDA was $104 million, up from $96 million. They took $20.7 million in restructuring expenses, mostly related to a previously announced reduction in their real estate footprint. The most positive sign in the report is that Wiley raised its full-year outlook, now anticipating higher earnings […]