Katrina's Toll On BAM
The devastation caused by Hurricane Katrina has caused Books-A-Million to lower its sales and earnings forecast for the third quarter and full year. The storm forced BAM to close 15 stores, some for as long as 10 days, and comparable-store sales dropped significantly at outlets that remained open but were affected by Katrina. Many of BAM's employees were also affected by the storm. As a result, full-year earnings are expected to be in the 68 cents to 71 cents per share range, down from earlier estimates of 73 cents to 77 cents.
Small Gain in July Sales
According to preliminary estimates from the U.S. Census Bureau, bookstore sales rose 0.9% in July, to $1.14 billion, a relatively small increase given the big sales numbers posted by Harry Potter and the Half-Blood Prince. For the year to date, bookstore sales were down 3.2%, to $8.25 billion. Total retail sales for the year to date rose 5%.
AMS Exec Settles with SEC
Marcy Wilson Roke, the former director of advertising for creative services at AMS, has settled civil charges brought against her by the Securities and Exchange Commission. While Roke neither admitted nor denied charges alleging that she conspired to overstate AMS's earnings, Roke agreed to pay a $25,000 civil penalty plus more than $56,000 from ill-gotten gains.
Last fall, Roke pleaded guilty to two counts of conspiracy and wire fraud brought by the U.S. Attorney's office, while v-p of advertising Sandra Miller Christie and a third AMS employee, Karyn Ann Larko, also pleaded guilty to similar charges. The larger SEC and U.S. Attorney's investigation into AMS advertising practices continues.
Authors Sue Pearson over Royalties
Two authors of business books have filed a lawsuit against Pearson Education charging that the publisher has deprived them of royalties on the sale of their books in the international market. The authors, Courtland Bovee and John Thill, are also seeking to make the lawsuit a class action, claiming that some 1,500 authors have been affected by Pearson's actions. According to the complaint, Pearson has intentionally reduced royalty payments by selling books to its international subsidiaries at improper discounts and by misusing the subsidiary rights provision.
Mixed Six Months for Bloomsbury
Revenue rose 14% at Bloomsbury in the first half of 2005, to £35.4 million ($64 million), although higher costs associated with the publication of Harry Potter and the Half-Blood Prince, plus the integration of Walker Publishing in the U.S., resulted in a 12% drop in net profit, to £2.9 million. Pretax profits rose 12%, to £4.1 million. Bloomsbury said the integration of Walker with Bloomsbury USA should be completed by the end of September.
Books Sales Up at RD
For the first time in more than five years, book sales in the fiscal year ended June 30 rose at Reader's Digest. Total book sales inched ahead 0.3% in fiscal 2005, to $971.6 million.
Big Earth Makes 3rd Buy
Big Earth Publishing has made its third acquisition of a small publisher this year, adding Bleak House Books to its earlier purchases of Johnson Books and Intrigue Press. Based in Madison, Wis., Bleak House publishes mysteries and literary fiction and has a backlist of about 15 titles. Benjamin LeRoy, Bleak House president, will become publisher of the Bleak House imprint.
New Editor at Milkweed
Daniel Slager, currently an editor with Harcourt Trade, will join Milkweed Editions October 17 as editor-in-chief. Slager replaces H. Emerson Blake, who left Milkweed for personal reasons in June. Slager, an editor at Harcourt since 2000, previously was associate editor at Grand Street. He serves on the board of Ledig House International Writers Colony and on the advisory board of Archipelago Books, an independent nonprofit literary press.
Paretsky Wins
Author Sara Paretsky won the Lifetime Achievement Award from the Private Eye Writers of America at this year's Bouchercon, the World Mystery Convention held this month in Chicago.
