Clarke Moves Up at RD

Reader's Digest has promoted Harold Clarke to president and publisher, trade publishing and special markets. Clarke has been with RD since 2000, serving as v-p and publisher, new market development, while also overseeing the adult trade book publishing and children's publishing units. Clarke's new title reflects his expanded authority to do bigger deals on a global scale, said a RD spokesperson. Clarke is credited with bringing RD into partnerships with such companies as Disney, Hasbro and NASCAR. Those agreements helped to make the trade segment one of the fastest-growing segments at RD in fiscal 2004.

Dip in Book Sales

Total book sales fell 1.5%, to $968.5 million, at Reader's Digest for the fiscal year ended June 30, the company reported in its year-end filing with the Securities and Exchange Commission. Despite the decline, books accounted for 40.5% of RD's total revenue of $2.39 billion in the last fiscal year, up from 39.7% in fiscal 2003.

Among the factors that contributed to the dip in book sales were lower sales of Reiman titles. Reiman still sold 4.3 million units last year, most through direct mail. Sales also fell at Select Editions, which the company attributed to a decline in membership plus the discontinuation of certain series that offset higher prices and pay rates. In addition, revenue fell 6% at Books Are Fun. Stronger sales were turned in by RD's trade unit, where sales increased 8%.

Reader's Digest Sales by Segment
($ in millions)