- CFO Joseph Lombardi is cautious but guardedly optimistic about sales in the all-important fourth quarter, saying that “the hardcover book business has improved” but there have been “some recent mixed retail sales reports.”
- Following a slow second quarter, the third quarter saw a turnaround in sales. CEO Steve Riggio said that the increase in sales began with Bob Dylan’s new CD, Modern Times.
- Diane Setterfield’s The 13th Tale was “one of the most successful new hardcovers… The wonderful ghostly tale was our number one bestseller the first day it went on sale, and the book went on to break all previous Barnes & Noble sales records for a first-time novelist. Almost 60 days after publication, the book is still one of our top-selling titles, due to its word-of-mouth appeal.”
- Fiction bestsellers for the quarter were Mitch Albom’s For One More Day, Stephen King’s Lisey’s Story, Nicholas Sparks’ Dear John, David Baldacci’s The Collectors, and “rising fiction star” Vince Flynn’s Act of Treason.
- On the nonfiction side, the bestsellers were John Grisham’s The Innocent Man, Bob Woodward’s State of Denial, Nora Ephron’s I Feel Bad About My Neck, and Richard Dawkin’s The God Delusion
- Looking at the fourth quarter, “Among the season’s best gift books, the standout is clearly Annie Leibovitz’s A Photographer’s Life, but Martha Stewart’s Homekeeping Handbook is off to a great start, as is the magnificent coffee table book called Rainforest.”
- In October, Barnes & Noble upped its discounts for shoppers who belong to its member program. The company expects this to help sales, but its inability to say just how the numbers might work out made investors nervous, the issue being that this plan could put a serious dent in the bookseller’s profit margin.
- Having said that, Barnes & Noble also noted that “margins continue to benefit from lower purchasing from book wholesalers, increased sales of our own publications, and an overall more efficient supply chain.” – i.e. those books published by Barnes & Noble are quite lucrative for the company.
Every three months I’ve been looking at Barnes & Noble’s quarterly conference call to get some insight into recent book industry trends and to see which books were the big sellers over the past few months and which are expected to be big in the coming months. Barnes & Noble’s first quarter ended May 5th. Here are the highlights from CEO Steve Riggio on the Q1 conference call (courtesy Seeking Alpha):In keeping with an ongoing trend, Barnes & Noble’s margins were pressured as the chain continues to discount heavily to stave off competition from the likes of Wal-Mart and from Amazon’s popular Amazon Prime program. Nonetheless, Wall Street seemed to like the overall numbers and pushed the stock higher.Sales in both the stores and online were better than expected. “Both benefited from a better new release schedule than we’ve seen in some time.””Rhonda Byrne’s The Secret has the unique distinction of being our bestselling title in hardcover, audio book and DVD.”Riggio said that Mohsin Hamid’s The Reluctant Fundamentalist was the third straight “Barnes & Noble Recommends” selection to “become an instant fiction bestseller upon publication.”Meanwhile, Oprah drove sales of Sydney Poitier’s Measure of a Man and Cormac McCarthy’s The Road.The quarter’s non-fiction bestsellers were Einstein by Walter Isaacson and In an Instant by Bob Woodruff.Looking ahead, Harry Potter and the Deathly Hallows will hit the shelves at the end of Barnes & Noble’s Q2. Khaled Hosseini’s A Thousand Splendid Suns just debuted “with very strong sales.” There’s also new fiction on the way from James Patterson, Nora Roberts, Robert Parker, and Ian McEwen (On Chesil Beach).On the non-fiction side of the ledger, new release The Reagan Diaries is already selling well. A pair of books on Hillary Clinton are coming shortly: A Woman in Charge by Carl Bernstein and Her Way by Jeff Garth. “We expect, of course, many more titles by and about the candidates for the presidential election season to be coming over the next year to 15 months,” Riggio said.
I was reading about the recent second-quarter earnings report for Barnes & Noble as part of my day job and I realized how much insight the company’s quarterly conference call provides in terms of current trends in the book industry, as well as which books will be are most likely to be the headline-grabbing titles over the next few months. I may do this each quarter from now on, as I think it’s an interesting proxy for what’s going on in the book industry at a given point in time.The big trend so far this year is a lack of blockbuster titles as compared to years past. From Steve Riggio, Barnes & Noble CEO, on the Q2 conference call (courtesy Seeking Alpha):We look back at the first half of this year as one of the softest periods in recent memory for the book industry in terms of hardcover new releases. There were simply very few new hardcover books that generated media buzz or sustained sales by word-of-mouth recommendations.The lack of blockbusters is thrown into particularly stark light when compared to a year ago, when Harry Potter and the Half-Blood Prince came out. Overall, sales were actually down from last year.Riggio called The Memory Keeper’s Daughter by Kim Edwards “one of the fastest-selling trade paperbacks in our history.”Barnes & Noble also looked ahead to the books that they anticipate will be big in the third quarter of this year. In fiction, Frederick Forsyth, Anna Quinlan, Robert Harris, David Baldacci, Janet Evanovich, and Robert Parker have new books on the way. The company also singled out Mitch Albom’s For One More Day (Riggio said that Albom’s previous book, The Five People You Meet in Heaven, “was the second-largest selling fiction book in our history”) and Charles Frazier’s 13 Moons, while The Thirteenth Tale by Diane Setterfield and The Interpretation of Murder by Jed Rubenfeld “are getting a lot of buzz.”In non-fiction, Barnes & Noble is anticipating big sales from Faith and Politics by Senator John Danforth, The Greatest Story Ever Sold: The Decline and Fall of Truth from 9/11 to Katrina by Frank Rich, Never Again: Securing America and Restoring Justice by John Ashcroft, The Confession by James McGreevey and Inside Bush’s White House, the Second Term by Bob Woodward “continuing his take on the Bush administration and the war.” Riggio also called John Grisham’s first non-fiction book, The Innocent Man: Murder and Injustice in a Small Town, “one of the most eagerly-awaited books we have seen in a very long time.”The company also highlighted several upcoming biographies and memoirs: Bob Newhart, Sandy Weil, Carly Fiorina, Ellen Burstyn and David Crosby. There’s also a “major new biography” on Andrew Carnegie and “the definitive book” on U2.Riggio said it “looks like a very strong season for cookbooks,” with the 75th edition of the Joy of Cooking, a new edition of The Bon Apetit Cookbook and new titles from Paula Dean, Rachel Ray, Emeril Lagasse and the Barefoot Contessa.
Every three months I’ve been looking at Barnes & Noble’s quarterly conference call to get some insight into recent book industry trends and to see which books were the big sellers over the past few months and which are expected to be big in the coming months. Staving off a post-Harry Potter hangover, B&N’s quarter ended November 3 was boosted by several titles that got major media attention, sending readers into stores to get in on the action.Here are the highlights from CEO Steve Riggio on the Q3 conference call (courtesy Seeking Alpha):The most important factor now “is the effect of media on the book industry and on the sales of individual titles.”The company was “pleasantly surprised when the third quarter opened quite strong with the release of Stephanie Meyer’s Eclipse, which became the fastest-selling teen novel in our history.” It just goes to show, people love vampires.”Media coverage of adult books was more extensive then typical, led by two shows, the CBS news magazine 60 Minutes and Oprah Winfrey.”After feature stories on 60 Minutes, the publicity for “Alan Greenspan’s The Age of Turbulence, Clarence Thomas’ My Grandfather’s Son and Joel Osteen’s Become a Better You, and Valerie Plame Wilson’s Fair Game shot those books onto the top of our bestseller list.” In other words, it was a good quarter for books with the author’s picture on the cover.Meanwhile, the backing of Oprah led to “phenomenal demand” for books like Jessica Seinfeld’s Deceptively Delicious Cookbook, Elizabeth Gilbert’s Eat, Pray, Love, Cathy Black’s Basic Black, and Michael Roizen’s YOU: Staying Young. In other words, self help and cookbooks remain in the Oprah wheelhouse. The “Book Club” lives on as well, “even sending classics such as Gabriel Garcia Marquez’s Love in the Time of Cholera to the top of bestseller lists.”And the last of the big media booksellers turned out to be Jon Stewart and Stephen Colbert, whose shows helped make a bestseller of Colbert’s I Am America (And So Can You!).Moving on to fiction, “it was a particularly good quarter for new releases for brand name fiction writers and those included John Grisham, David Baldacci, Patricia Cornwell, James Patterson and the return of Ken Follett with his World Without End.”Of course, with big media being the hand that feeds the publishers, the writers strike could limit promotional opportunities. “We are already hearing of cancellations of writers that were scheduled to be on some of the major talk shows.””Nevertheless, several books by brand name writers with new and forthcoming titles including Sue Grafton, Jim Cramer, Steve Martin and Dean Ornish” are expected to do well in the coming months.
As we have every quarter for the last several, we’re looking at Barnes & Noble’s recent quarterly report to gauge the trends that are impacting the book industry – which books were big over the last few months and what’s expected for the months ahead.As was noted last quarter, amid a challenging environment for both of the big chains, there was much speculation that Barnes & Noble would snap up struggling Borders. Now, it appears that Barnes & Noble has lost interest in going that route. According to the Wall Street Journal, “Barnes & Noble’s decision not to bid reflects in part the tight lending markets that likely would make it difficult to arrange bank financing. The retailer was also known to be concerned about the length of some of the leases that Borders has signed.”Beyond that, Barnes & Noble’s Q2 was surprisingly ok, surpassing Wall Street’s admittedly dim view of its prospects by keeping a tight lid on costs.What follows are insights gleaned from Barnes and Noble CEO Steve Riggio’s comments on the quarterly conference call for the quarter ended August 2nd. (Transcript provided by Seeking Alpha.) The Harry Potter hangover was in full effect in Q2, as it marked a year since the series’ final book came out. Up against the boy wizard-fueled numbers of a year ago, Barnes & Noble’s revenue dipped by -1.6% from a year ago. Just like last quarter, Riggio didn’t really discuss any individual titles, though in the past he has been known to run down top sellers and look ahead to highly anticipated books. It may just be that there’s not much out there getting the book exec excited these days. A couple of other highlights:Riggio explains that the book business may not be in as bad shape as many assume: “The closer examination of sales will reveal that even in this soft retail environment across America, the book business is stubbornly holding up. If we normalized our sales without the impact of Harry Potter and its add on sales last year, throw in the double digit decline we’re still experiencing in the music business, the rest of our business was relatively flat so as we’ve said for many years, the book business is a relatively stable business.”The Olympics are expected to take a small but noticeable bite out of sales in Q3, as folks stay glued to their TVs and put off shopping and reading.
As we have every quarter for the last several, we’re looking at Barnes & Noble’s recent quarterly report to gauge the trends that are impacting the book industry – which books were big over the last few months and what’s expected for the months ahead.
Sales dipped by -5% from a year ago for the quarter ended August 1st, consistent with the declines seen in prior quarters. “Store traffic was down throughout the quarter,” according to CFO Joseph Lombardi.
As has been the case as the company has focused more on the tough economy and other aspects of the business, there wasn’t much discussion of individual titles this year.
What follows are insights gleaned from Lombardi and Barnes and Noble CEO Steve Riggio’s comments on the conference call discussing Q1 results.
Lombardi pointed out that the same quarter a year ago had big sellers in Stephanie Meyers The Host, Barbara Walters Audition, and Randy Pausch’s The Last Lecture, while sales from “bestsellers were lower this year.”
According to Lombardi, “the fall lineup looks fairly strong, with Dan Brown’s The Lost Symbol being the big third quarter title.”
Barnes and Noble is pushing hard to get on the ebook bandwagon. Riggio said, “The most important development of the quarter was the launch of our e-bookstore on July 20th,” adding that the company had the “top two most downloaded apps in the iTunes store… our e-reader app, which continues to be the number one book app, and the Barnes & Noble bookstore app, which enables customers to browse, search, and snap photos of… covers of products and to buy them with ease.”
Riggio also outlined efforts to get more titles into the e-bookstore, along with a selection of newspapers and magazines, the unmentioned target being the Amazon Kindle store which has surged to a big lead in offering a large number of titles.
As we have every quarter for the last several, we’re looking at Barnes & Noble’s recent quarterly report to gauge the trends that are impacting the book industry – which books were big over the last few months and what’s expected for the months ahead.To a large extent, things have gone from bad to worse for the big booksellers. Sales for the 3rd quarter ended November 1st were down -4.4% from the same quarter a year ago. Store traffic at Barnes & Noble has been declining all year, and in the 3rd quarter, average ticket (i.e., the average amount spent per visit) started falling as well. Having said that, Barnes & Noble is in better shape than rival Borders which has been at risk of running out of cash this year. Barnes & Noble is now focusing on controlling costs, keeping inventory low, and increasing supply change efficiency.What follows are insights gleaned from Barnes and Noble CEO Steve Riggio’s comments on the conference call discussing Q3 results. (Transcript provided by Seeking Alpha.)Riggio noted that this has been a busy year for news, leaving less room for books. Sales have “been affected by lack of coverage of books both in the mainstream media and on cable, news and talk radio, which were all fully devoted to coverage of the Presidential election and then the economic crisis which hit in September.”Riggio claims that inventory reductions are not hurting the shopping experience (though I’d imagine they are hurting publishers): “While inventory levels have decreased, we have maintained outstanding breadth of selection in our stores and online. In fact our in stock standards for what we call core titles have never been higher. We have the books the people need and that they ask for everyday.”Elaborating further on the effect of media coverage on the book industry recently, Riggio said, “Well we’ve obviously seen it in books by President-Elect Barack Obama, which has been fantastic. Publishers actually lightened up their September and October publishing lists because they knew that the election would dominate the media. Obviously no one forecasted the economy as well to dominate the media, but we’re hoping that things get back on track as we enter the holidays and into the January season so that we can continue to get media interest in books.”Continuing last quarter’s trend of not mentioning specific titles (one wonders if the economic challenges are sapping the enthusiasm Riggio had typically shared regarding specific titles in past quarters), Riggio only mentioned a pair of books, the new book from megachurch preacher Rick Warren and Jon Meacham’s presidential biography, American Lion: Andrew Jackson in the White House.Riggio and Barnes & Noble see a silver lining in the tough times facing shoppers heading into the holidays, however. “Books are fairly affordable and we hope that as consumers get into the holiday season they recognize that a purchase of $15 or $20 or $25 can give someone a fairly memorable gift.”
As we have every quarter for the last several, we’re looking at Barnes & Noble’s recent quarterly report to gauge the trends that are impacting the book industry – which books were big over the last few months and what’s expected for the months ahead.Sales were still down for the 1st quarter ended May 2nd, but not quite as bad as they’ve been in recent quarters. Overall, the decline was -3.5% from a year ago. “Store traffic was down throughout the quarter,” according to CFO Joseph Lombardi.After scarcely discussing individual titles or authors at all in recent quarters, the Barnes & Noble execs dropped quite a few names this time around.What follows are insights gleaned from Barnes and Noble CEO Steve Riggio’s comments on the conference call discussing Q1 results.Riggio highlighted the two new Barnes & Noble Recommends selections Dog on It by Spencer Quinn and Prayers for Sale by Sandra Dallas.He also had some interesting comments about the Barnes & Noble Recommends program saying that selected titles “often garner 30, 40% as much as 50% market share in initial weeks on sale,” meaning that B&N is responsible for a large chunk of the overall sales of those titles, and furthermore B&N finds “that those books go onto the bestseller lists of other national, local and regional booksellers.””Key site improvements” are expected to improve the performance of bn.com in the second half of the year.After purchasing ebook provider Fictionwise, B&N now says “the implication of a vastly greater amount of content both in our stores and onlineis exciting to us and has inspired us to develop some unique and innovative approaches to the user experience of buying and reading books.” There will be announcements on this later in the year.Finally, the fall lineup “actually looks quite strong or fairly strong.””In addition to the already announced Lost Symbol by Dan Brown, which has been expected or anticipated eagerly by booksellers for a number of years, many well known authors, some who have not published books in the last few years have new books coming out. And it includes Jon Krakauer [Where Men Win Glory: The Odyssey of Pat Tillman], Pat Conroy [South of Broad], John Irving [Last Night in Twisted River], Glenn Beck, Garrison Keillor [Life Among the Lutherans], Margaret Atwood [The Year of the Flood], Barbara Kingsolver [The Lacuna], Jeff Shaara, Edward Rutherfurd, Robert Jordan and a posthumous novel by Michael Crichton [Pirate Latitudes].”