- 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.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].”
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.
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 the retailer expects to be “big” in the coming months. Here are the highlights from CEO Steve Riggio on the Q4 conference call (courtesy Seeking Alpha):One of the big stories for book retailers this year was a lack of blockbuster titles to get shoppers into stores. “It was a year that produced two titles that garnered significant media attention. But while the lack of traffic producing new releases didn’t help our top line, what’s important is that our core booklist was solid.” I’m not sure which titles he’s referring to there – which says something about last year’s lack of blockbusters – but I’m guessing one of them was Barack Obama’s The Audacity of Hope.Riggio also noted how customer loyalty programs have made for “a vastly different environment than just three years ago,” and he alluded specifically to Amazon Prime, the online retailer’s popular shipping offer.Riggio said the chain has high expectations for new books by Lisa Scottoline (Daddy’s Girl), Jonathan Kellerman (Obsession), Mary Higgins-Clark (I Heard That Song Before), David Baldacci (Simple Genius), Michael Chabon (The Yiddish Policemen’s Union), and Khaled Hosseini’s follow-up to Kite Runner, A Thousand Splendid Suns.”The Oprah effect on books continues.” Oprah helped make YOU: On A Diet, Bob Greene’s Best Life Diet, and The Measure of a Man by Sidney Poitier. But the really big seller – much to the chagrin of many – was The Secret by Ronda Burn, which Riggio called “probably one of the fastest non-fiction selling books we’ve had in recent memory.”B&N is also looking forward to some new non-fiction titles: Einstein by Walter Isaacson, Where Have All the Leaders Gone? by Lee Iococca, Animal, Vegetable, Miracle: A Year of Food Life by Barbara Kingsolver, and Paula Dean’s memoir, It Ain’t All About the Cooking.Finally, “we are just beginning to see a wave of books about politics and those related to the 2008 Presidential election at this time and by far, Barak Obama’s The Audacity of Hope leads the pack.”Previously: Barnes & Noble’s third quarter.
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.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.”