- 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.
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.For the 4th quarter ended January 31st, it wasn’t pretty. Sales fell by -7.3% compared to the quarter a year ago. Barnes & Noble said that a drop in store traffic, not average ticket (the average amount spent by each shopper), was primarily responsible for the decline.What follows are insights gleaned from Barnes and Noble CEO Steve Riggio’s comments on the conference call discussing Q4 results. (Transcript provided by Seeking Alpha.)The original impetus for this regular feature was my noticing that Riggio liked, when laying out B&N’s results to Wall Street analysts, to share some details on which books had been flying off the shelves and which books he expected to be big sellers in the coming months. Direct from the mouth of the guy running the biggest brick and mortar bookstore chain in the world, it was some insider insight into what stories would soon be buzzing around the industry. However, over the last few quarters, Riggio has essentially stopped talking about books during these quarterly calls. It’s quite possible that he’s just trying to speed things along, but I can’t help but wonder if the enthusiastic talk of individual titles falls by the wayside as the retail environment gets more and more dire.Riggio called 2008 “by far the most challenging retail environment we’ve ever experienced.”It sounds like B&N is feeling the digital itch as Amazon gets aggrssive with the Kindle: “We also plan to return to the business of offering customers digital content inclusive of eBooks, newspapers and magazines. We have a large number of assets in place to enable us to sell digital content, our ecommerce platform is solid and scalable.” Riggio didn’t give further specifics but said, “we do have a wide range of initiatives in development.”
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. With a recession threatening, Borders faltering, and some even suggesting a merger between the two big book chains, 2008 is shaping up to be a rocky year for the book retailers.Barnes & Noble’s fourth quarter (which ended on February 2nd) was slightly worse than what analysts had expected, but the stock hasn’t been punished on Wall Street. Here are the highlights from CFO Joseph J. Lombardi from the March 20th, Q4 conference call (courtesy Seeking Alpha):”Fiction and the genres had a strong quarter, especially graphic novels and romance. Hardcover sales were driven by a host of familiar names, including Sue Grafton, Dean Koontz, Ken Follett, Stephen King, and a holdover from the spring, Khaled Hosseini’s A Thousand Splendid Suns.”“Both John Grisham and James Patterson had two bestsellers; Grisham with Playing with Pizza and The Appeal, and Patterson with Quickie and Double Cross. Trade paper fiction was driven primarily by movie tie-ins and selections from Oprah Winfrey. Movie tie-ins included The Kite Runner, Atonement, and I Am Legend, and the Oprah recommendations for Pillars of the Earth and Love in the Time of Cholera drove the sales of those titles.” Pretty amazing that Grisham’s The Appeal was a bestseller when it came out only five days before the quarter ended. Meanwhile, Oprah continues to move books.“In non-fiction, areas of strength included biography, humor, health and diet books, as well as the continuing success of Rhonda Byrne’s The Secret. Other key hardcover titles included Stephen Colbert’s I Am America, Tom Brokaw’s Boom!, The Dangerous Book for Boys and its sequel, The Daring Book for Girls, and Michael Pollan’s In Defense of Food. Non-fiction movie tie-ins also included in non-fiction were Into The Wild and Charlie Wilson’s War.” The continued success of The Secret is somewhat disheartening.Aggressive discounts associated with Barnes & Noble’s membership programs continue to eat into the chain’s gross margins, but interestingly, so did “bestseller markdowns associated with the seventh and final Harry Potter book,” though to a lesser extent.In 2008, Barnes & Noble expects to face a double whammy of “recessionary pressures in this uncertain economic environment” and very challenging comparisons against the final Harry Potter book and improved hardcover sales last year.
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.
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.This quarter has been rather dramatic for the big chains. In March, Borders took an emergency cash infusion (with many strings attached) from a large hedge fund shareholder just to stay afloat. This came on the heels of a new strategy initiative from the chain, which we dubbed “The Froot Loop Gambit,” leading to some great discussion and a follow-up post about “knowledge products.” Two months on, Borders is out of the woods for the short term, but appears unlikely to survive as a standalone company in the long term. Right now, most are speculating that Borders will be swallowed up by Barnes and Noble.As such, our regular look at Barnes and Noble quarterly updates may offer an even broader view of the book industry as soon as next quarter. Interesting times. In the meantime, what follows are insights gleaned from Barnes and Noble CEO Steve Riggio’s comments on the quarterly conference call for the quarter ended May 5th. (Transcript provided by Seeking Alpha.) Interestingly, this quarter was much lighter on the discussion of individual books that have done well recently or that are expected to do well in current and future quarters. It’s hard to know what to make of this change in tone other than the fact that there appears to be paucity of blockbusters this year compared to the Potter-mania, political memoirs, and self-help tomes that fueled sales in 2007.First quarter numbers compared unfavorably to a year ago when Oprah-backed positive thinking pablum The Secret was a massive seller.Looking ahead, the second quarter will face very tough comparisons to Q2 2007 thanks to the huge sales of Harry Potter a year ago. “the quarter should end with some excitement with the publication of Breaking Dawn by Stephanie Meyer and we think that’s the most anticipated book of this year, if not actually in a couple of years. Even though it’s a teen book, it has wide appeal.”April was difficult but May started out better: “We had a number of big books in the first couple weeks, including Barbara Walters’ Audition, the Stephanie Meyer adult fiction book The Host and the continued strength of the Last Lecture.”As for Riggio’s answer to the Borders question: “We’ve put together a team of senior management people and financial advisors to study the feasibility of a transaction with Borders. We’ll provide no further comments about any discussions we may or may not have.”
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.