October Bookstore Sales Drop
Bookstore sales fell 5.1% in October, to $979 million, making October one of the softest months for sales this year. Sales for the entire retail segment were also a bit soft, though they still rose 6% in the month, according to preliminary estimates from the U.S. Census Bureau. For the first 10 months of 2005, bookstore sales dropped 2.6%, to $12.76 billion, while sales for all of retail increased 7.5%.
RH Having Up Year
Random House chairman Peter Olson told employees in his year-end letter that the company is "well positioned" to record gains in worldwide sales and operating profits in 2005. In North America, the Knopf Publishing Group, the children's division and Random House of Canada are reported to be having banner years. And the company's two-year-old distribution business now has 15 clients and will have total billings of more than $100 million in 2006.
Musicland Cuts Books
Musicland's decision to close its Media Play chain will not quite put the retailer out of the book business. According to spokesperson Laurie Bauer, Musicland will still sell manga, bargain books and "selected general releases that appeal to Suncoast and Sam Goody customers." That selection, however, is a dramatic reduction from the more than 40,000 titles once stocked by Media Play.
Patterson to Premium Paperback
Warner Books will test the premium paperback format next year when it publishes the mass market editions of James Patterson's 4th of July and Lifeguard in the larger trim size. July will be released in July and Lifeguard in August, and each will retail for $9.99. Beth de Guzman, head of mass market for Warner, said the publisher wants to experiment with the format with one of its strongest sellers. "We want to put our best foot forward," she said. If sales are strong enough, Warner could publish other authors in premium paperback next fall.
Scholastic Lures di Capua
Michael di Capua will move his children's book imprint from Hyperion to Scholastic January 2. Di Capua, who will report to Lisa Holton, president of Scholastic's trade publishing and book fairs division, will continue to work with his authors and illustrators, who include Maurice Sendak, Jules Feiffer and Natalie Babbitt. His backlist remains with his previous houses.
Soft Second For Scholastic
Scholastic reported disappointing results for the second quarter ended November 30. Total revenue rose 2% in the period, to $696.7 million, but net income fell 8%, to $66.9 million. Sales were down 3% in school book clubs, 19% in continuities. Results were also off in the U.K. Trade sales were up 11%, to $54.2 million, helped by a $5 million increase in Harry Potter sales.
As a result of the weak performance, company chairman Dick Robinson said Scholastic is implementing a number of programs to ensure the publisher hits its full-year financial targets. Among the announced initiatives are delaying hiring across the company, accelerating its turnaround efforts in the U.K., streamling its book club promotions, adding more book fairs, introducing new continuity programs, trimming marketing costs and reducing overhead.
Gardner Adds Books Are Fun
Thomas Gardner, recently promoted to executive v-p of Reader's Digest, has added the company's Books Are Fun division to his portfolio. Joel Feigenbaum will continue as BAF president, reporting to Gardner.
Prebich To Head Dorchester
After running Dorchester Media, the magazine wing of the company, John Prebich has been named president of Dorchester Publishing, putting him in charge of the company's mass market paperback group as well as the magazine division. Prebich will succeed George Sosson, who has been running Dorchester's book unit for five years.
Herman to Running
Craig Herman has been named v-p, director of marketing and publicity at Running Press.
He replaces Sam Caggiula who will leave the company at the end of the year.
Obituary: Leona Nevler
Leona Nevler died in New York City on December 10 at the age of 79. Nevler, whose career spanned more than 50 years in publishing, was still working as a senior editor at Penguin. After tenures at Little, Brown and Lippincott, Nevler published the bestseller Peyton Place at Fawcett Books; in 1984 she was named publisher of Fawcett World Library, becoming one of the first women to run a major house.
Clarification
Barnes & Noble took the $6.9-million charge to cover legal costs associated with the two settlements, as reported in last week's issue, in its second quarter.
