Pearson’s third quarter trading update surprised investors who thought they had become accustomed to the education giant’s postponed recovery. The statement reads politely, “Pearson is reiterating its 2016 guidance and its 2018 goals are unchanged,” but the numbers have sales for the first three quarters of the year down 7 percent in underlying terms, and down 10 percent measured in constant exchange rates, saved a bit by the plunging British pound, which leaves actual topline numbers down only 3 percent (since two-thirds of their revenue comes in US dollars). That’s actually a little less poorly than they were doing at the […]
Earnings Reports
Book Sales Continue Modest Decline at WH Smith, As Profits Improve
UK-based WH Smith reported annual results through August 31, declaring what passes for “another good performance” at their High Street stores — which means trading profit there grow £3 million to £62 million, even as sales continued to ebb. Total sales in the division fell 3 percent and same-store sales declined 2 percent, even with the launch of the Zoella Book Club and the popularity of “color therapy” books, which “were a key driver of sales.” But book sales still feel 2 percent on a same-store-basis, with stationery sales rising and a growing initiative to install actual Post Offices inside the stores. They note that “kids book sales […]
Potter Play Drives Scholastic Gain
Scholastic reported sales for their fiscal first quarter, ending August 31, with the release of Harry Potter and the Cursed Child driving sales up to $283 million, compared to $191 million a year ago. Their traditional seasonal loss (since school was not in session) only declined modestly on the big sales gain, however, at ($63.1 million), compared to ($79.5 million) a year ago. Trade publishing sales were $116.9 million — compared to $47.3 million a year ago without a new Harry Potter book. The Potter release in Canada also boosted Scholastic’s international division, where sales rose $16.6 million to $89.7 million […]
Book Sales Fell $38.6 Million at BN
As usual, Barnes & Noble followed their press release quarterly results with a more detailed SEC quarterly report that offers some additional details on the chain’s performance. As we suggested yesterday, the continuing decline of Nook — with digital content sales falling $7.1 million, or 18.9%, at about $30.5 million for the quarter — was propped up by lawsuit settlement funds and could have been still worse. Noting that “first quarter content unit trends benefited from the eBook settlement,” the company said Barnes & Noble customers “activated” $39.5 million in settlement fund credits, and redeemed almost $22 million of those credits. (Credits from the Apple […]
BN Education Has Flat Quarter
Barnes & Noble Education also reported first quarter fiscal 2017 results Thursday morning, though their mediocre showing was more in line with expectations. Fulfilling our assessment as “the growth company that doesn’t grow,” sales of $239 million were flat even with the addition of 33 new stores “with estimated annual sales of $110 million.” That’s because same-store sales fell 2.8 percent, in particular because textbook sales declined 6.8 percent. Comments from ceo Max Roberts underscored that BN College is officially a student merchandise chain that also sells textbooks rather than the inverse (italics are ours): “The comparable store sales decline is the […]
As Feared, Barnes & Noble Reports Poor Quarter, Reduces Sales Guidance; Riggio Promises Remedies
As publishing people had feared since the abrupt announcement that CEO Ronald Boire was dismissed by Barnes & Noble after less than a year on the job, the retailer reported disappointing results for their fiscal first quarter, ending July 30, on Thursday morning. Sales of $914 million fell 6.6 percent compared to a year ago, with a consolidated net loss of $14.4 million, or $0.20 per share (compared to a loss of $7.8 million, or $0.27 per share, a year ago). That’s well short of analysts’ expectations of $958 million in sales and a loss per share of 13 cents, and investors who fell for the misplaced enthusiasm yet again of […]