Barnes & Noble reported sales for holidays, with same-store sales gaining a little bit over the nine weeks ending December 29, up 1.3 percent. “Although we got off to a slow start, sales picked up momentum as we moved deeper into the season,” chairman Len Riggio says in the announcement, with same-store sales in the smaller window between Black Friday and New Year’s Day rising 4 percent. (The latter is not the traditional measure and does not deserve to feature in anyone’s headline; historically the chain has always reported the full nine-week holiday sales period.) The small improvement still marks […]
Earnings Reports
Scholastic Q2 Results Flat, with Continued Trade Growth
Scholastic reported Q2 results for the period ending November 30, 2018, again showing strong results in children’s trade books, which is a modest part of their overall sales, which were up slightly overall. Second quarter revenue was $604.7 million, an increase of 1 percent compared to $598.3 million in the second quarter of 2018 – despite a negative affect from the new ASC 606 revenue recognition guidelines. The new accounting rules lowered revenues by $10.8 million in the quarter, whereas in the first quarter the rules changes had added $9.3 million to sales. Adjusted EBITDA was $123.2 million for the […]
Earnings Fall At Wiley, With New Restructuring Charge
Wiley reported fiscal second quarter earnings Wednesday morning (not expecting that financial markets would be closed in honor of the late President Bush). Sales of $449 million were down by $3 million, as operating income of $57.5 million was down $23.3 million. They took $10 million of restructuring charges in the quarter, $8.7 million of that for severance, “reflecting continued cost reduction actions across the business.” ($5.2 million of those charges were against corporate expenses; $1.4 million was for the publishing division.) Foreign exchange reduced sales by $8.7 million. In advance of the formal SEC filing, this time Wiley’s press […]
Barnes & Noble Education Shares Fall Hard On Poor Quarter
Barnes & Noble Education underperformed again, with second quarter sales falling 8.1 percent to $815 million, and investors headed straight for the door. Ninety minutes after the market opening, shares were down approximately 28 percent, to about $4.60 a share, which would be a new all-time low for the stock if it holds. (At that price, the market cap is around $209 million.) Sales at the College stores declined $54.4 million, with comparable store sales down 5.6 percent, “primarily due to lower textbook sales.” Sales from net new stores (new stores less closed stores) declined by $15.2 million, compared to an increase […]
Barnes & Noble Has Slimmer Loss, Smaller Sales Decline
If you are looking to reassure yourself as Barnes & Noble heads into the crucial holiday sales period, then here is what you will focus on in the company’s fiscal second quarter earnings report this morning. Same-store sales fell by only 1.4 percent, which the company calls a “significant improvement” and touts as their “best quarterly performance since the fourth quarter of fiscal 2016.” With a low bar set after some poor holidays — down 6.4 percent last Christmas, following a 9.1 percent same-store decline for Christmas 2016 — the company expects to see “continued sales improvement during the holiday […]
Orwell Licensing Agreements Boost Trade Sales $15 Million at HMH
Houghton Mifflin Harcourt reported Thursday its operating and financial results for the third quarter ended September 30. Sales were flat, at $516 million — stable compared to the dark days of Q3 2016. Though net income was down 5 percent, or $4 million, to $86 million, earnings were still ahead of analysts’ diminished expectations and the stock is up sharply Thursday morning on the relief. After trading down to all-time lows after the second quarter results, shares are up about 20 percent in the first hour. Trade sales, which were weak last quarter, recorded a significant one-time boost, up $15 million, […]