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.