WH Smith provided an early update on its half-year results, alongside a warning about the potential impact of Covid-19 on earnings. For the first half of the fiscal year through the end of February, overall sales rose 7 percent, though High Street bookstore sales fell 5 percent, and were down 4 percent on a same-store basis. Profit for that period “will be in line with market expectations,” says the release. The group says the virus crisis has not yet significantly impacted High Street sales; however, “it recognises that Covid-19 could result in reduced high street footfall.” But their travel store […]
Earnings Reports
McGraw-Hill Reports Slower Sales Decline in 2019
McGraw-Hill reported Q4 earnings and its annual report for 2019, with full-year revenue of $1.571 billion, down from $1.597 billion in 2018. Though the decline moderated this year, it marks the sixth year of falling sales for the company. In 2017, sales had been $1.719 billion. This will be the last time the company’s fiscal year ends December 31. They are revising their fiscal year to end March 31, to “better align with seasonal industry cycles.” After the close of the next quarter, they will issue a revised annual report covering the new fiscal year. They have also changed for […]
LSC Communications Is Negotiating with Lenders to Keep Operating
LSC Communications reported fourth quarter 2019 earnings on March 2, with more poor results and news that they are on temporary life support with lenders for the next few months while management tries to restructure their debt and find a way to continue operations. In non-technical terms, they are facing potential bankruptcy if they cannot renegotiate their loans or bring in fresh capital. Barely regarded as a going concern by capital markets before the disclosure, the company’s stock fell by more than half on the news, from 29 cents a share down to less than 13 cents a share. The […]
Wiley Reports a Favorable Third Quarter
Wiley reported earnings for the third quarter ended January 31, with overall sales of $467 million, above analysts’ expectations. Operating income was $48.5 million, down from $50.4 million in last year’s quarter. The company had restructuring charges of $3.3 million, and they raised their guidance for full-year adjusted earnings by 10 cents a share. Thirty minutes after open, the stock was up modestly on the news, trading about 2 percent higher than yesterday’s close. What Wiley calls education publishing showed some improvement, with sales of $101 million, up from $95.6 million last year. (They changed their reporting at the beginning […]
Bonnier Books Reports Improved Sales and Profit for 2019
The Bonnier Group released full year 2019 earnings in late February, with Bonnier Books reporting sales of SEK 5.77 billion ($611 million), up from SEK 5.52 billion ($634 million) in 2018. Operating profit (EBITA) improved more, increasing to SEK 250 million from SEK 148 million last year, despite “investments in growth and a declining market for physical book retail in the Nordic countries.” Bonnier Books in Germany had its best results in ten years, and in the UK, the company reported “increased sales and a positive result, following changes that were initiated in 2018,” apparently making good on Bonnier Books […]
Barnes & Noble Education Continues Its Decline
Barnes & Noble reported weak earnings yet again, with third quarter sales of $502.3 million, down 8.3 percent from last year’s period, and a net loss of $(1.7) million, compared to net income of $0.8 million in the prior year period. The company announced another “significant cost reduction program,” the benefits of which aren’t expected until 2021. Next quarter, the program will result in a $10 million to $15 million restructuring charge. Same-store sales fell 7.3 percent in the retail (college bookstores) division, and wholesale sales declined 14.7 percent. The company now expects full year adjusted EBITDA of between $80 […]