Dear Industry Member: Following aggressive lobbying efforts from the ACMA, its partner organizations the Coalition for a 21st Century Postal Service and Keep Us Posted, and others with mailing interests, today Rep. Gerold Connolly (D-VA, at right) introduced the Ensuring Accurate Postal Rates Act. If passed into law, the bill will require the Postal Regulatory Commission to conduct a follow-up review of the postal rate-making process. Below is a brief timeline: • In 2020, the PRC completed its mandated 10-year review of the postal rate-making process. The review modified the rate-making process, opening the door for the USPS to increase rates beyond the CPI cap and doubling the number of rate hikes in each of the past two years. • Although completed that November, the review quickly became outdated: A section of the April 2022 USPS Fairness Act (section 102 of Public Law 117-108) canceled unpaid USPS obligations, thereby removing an essential basis for the PRC ruling. • The PRC ruling also did not adquately account for the windfall of business the USPS achieved from the Covid boom in package shipping and other improvements to its financial condition from the pandemic. • Less than a month after the PRC ruling, the CARES Act authorized up to $10 billion in funding for the U.S. Postal Service from the U.S. Treasury. We appreciate Rep. Connolly's sensitivity to the impact of extra-large rate increases on our members. The ACMA will will continue to advocate to build support for this much needed legislation, including how you can work with your own legislators to ensure this bill is passed.

The American Trucking Associations is calling on Congress to help resolve ongoing labor negotiations in the freight rail industry should the parties fail to reach a mutual agreement when the current cooling off period expires on September 16. The trucking industry is freight rail’s largest customer, and in a letter sent to Capitol Hill today, ATA is warning of dire consequences for the U.S. supply chain if a strike were to go into effect. “Idling all 7,000 long distance daily freight trains in the U.S. would require more than 460,000 additional long-haul trucks every day, which is not possible based on equipment availability and an existing shortage of 80,000 drivers,” said ATA President and CEO Chris Spear in the letter. “As such, any rail service disruption will create havoc in the supply chain and fuel inflationary pressures across the board.” The letter urges Congress to help implement a contract patterned on the recommendations outlined by the Presidential Emergency Board and cautions against merely extending the negotiation timeline further, which would push a potential strike deeper into the holiday season when the supply chain is already under added pressure.

The United States Postal Service reported new delivery performance metrics for the ninth week of the fiscal fourth quarter showing the average time for the Postal Service to deliver a mailpiece or package across the postal network was consistent at just 2.4 days. As the Postal Service heads into the busy fall mailing season, service performance remains strong and steady across all mail categories. FY2022 fourth quarter service performance scores covering July 1 through Sept. 2 included: *First-Class Mail: 93.2 percent of First-Class Mail delivered on time against the USPS service standard, consistent with performance from the fiscal third quarter. *Marketing Mail: 94.6 percent of Marketing Mail delivered on time against the USPS service standard, consistent with performance from the fiscal third quarter. *Periodicals: 87.0 percent of Periodicals delivered on time against the USPS service standard, consistent with performance from the fiscal third quarter.

The Postal Regulatory Commission (PRC) approved a temporary price adjustment for key package products for the 2022 peak holiday season. This temporary rate adjustment is similar to ones in past years that help cover extra handling costs to ensure a successful peak season. The temporary rates will go into effect at 12 a.m. Central on Oct. 2 and remain in place until 12 a.m. Central Jan. 22, 2023. The peak-season pricing approved by the PRC affects prices on the following commercial and retail domestic competitive parcels: Priority Mail Express (PME), Priority Mail (PM), First-Class Package Service (FCPS), Parcel Select and USPS Retail Ground. International products will be unaffected. This seasonal adjustment brings prices for the Postal Service’s commercial and retail customers in line with competitive practices. No structural changes are planned as part of this limited pricing initiative.

Imports at the nation’s major container ports are expected to fall below last year’s levels for the remainder of 2022. That’s according to the monthly Global Port Tracker report released by the National Retail Federation and Hackett Associates. The report cited ongoing inflation and the Federal Reserve’s efforts to cool demand through higher interest rates. The key now is dealing with ongoing supply chain issues around the globe and with labor negotiations at West Coast ports and freight railroads.

As students return to the classroom for the new school year, Savvas Learning Company is helping educators move learning forward with engaging, easy-to-use K-12 solutions that offer data-informed instruction and adaptive technology to take personalized learning to the next level. “A one-size-fits-all instructional approach doesn’t work in a classroom where every student brings their own unique learning style. More than ever, personalized learning is critical in getting students engaged and motivated to learn and supporting academic growth,” said Bethlam Forsa, CEO of Savvas Learning Company. “Teachers know best how to personalize learning for their students. This is why Savvas delivers learning solutions that are powered by adaptive technology, enabling educators to easily tailor instruction to address each student’s learning needs, interests, and abilities.”

Revenue *Research was flat as reported, or up 4% at constant currency, driven by organic growth in Publishing and Solutions and contributions from recent acquisitions. - Revenue by product type reporting change – Research is now reported as Research Publishing and Research Solutions. Research Solutions includes platforms, corporate solutions and services for societies and other publishers. It replaces the Research Platforms reporting line. Please see the tables below for more detail. *Academic & Professional Learning revenue declined 5% as reported and 1% at constant currency. Education Publishing performance saw a decline in print course material offsetting growth in digital content and courseware. Professional Learning saw growth in corporate training offsetting a decline in professional publishing. *Education Services increased 7% as reported and 11% at constant currency, with very strong double-digit growth in Talent Development offsetting a decline in University Services from market-related enrollment challenges. EPS *GAAP EPS was a loss of $0.32 as compared to +$0.24 in the prior year period, primarily reflecting a $0.30/share ($22 million) restructuring charge and accelerated amortization of intangibles of $0.07/share ($5 million) related to the discontinuation of the mthreebrand.

On September 2, 2002 publishers filed the latest brief in the copyright infringement lawsuit against Internet Archive (“IA”), first filed on June 1, 2020 in the United States District Court for the Southern District of New York. The brief follows publishers’ July 7, 2022 request for summary judgement against the Internet Archive, which explained that both the law and facts of the case indisputably point to infringement and do not require a trial. The most recent filing comprehensively negates the Internet Archive’s own motion for summary judgement, which publishers believe is meritless and misleading. The plaintiffs — Hachette Book Group, HarperCollins Publishers, Penguin Random House, and Wiley — brought the lawsuit on behalf of themselves and their authors after the Internet Archive refused to halt its infringement of tens of thousands of their books.

Berkshire Hathaway's HomeServices of America unit has extended its custom publishing and content marketing deal with Havas House, the customer media division of Republica Havas Group and Havas Creative North America Network. The extension includes a new custom magazine, Lifestyles Southern California, which launches in December and targets the "ultra affluent audience" of Southern California's luxury real estate market. With a circulation of 75,000 print editions delivered directly to select, multimillion-dollar properties (valued at $3 million to $5 million).

Conde Nast continues its digital pivot with the publishing giant announcing plans to shutter the print edition of its beauty tome Allure, and the December 2022 magazine will be its last. Editor-in-Chief Jessica Cruel broke the news to staffers this week along with the information that employees' roles may change, but no layoffs have been confirmed yet. "Our brand is stronger than ever across social and digital and our success is testament to our collaboration as a team and because we know just how and where our audience is accessing content in today's ever-changing landscape," wrote Cruel. "It's our mission to meet the audience where they are and with this in mind, after our December print issue, we are making Allure an exclusively digital brand."

Welcome to 2022, when even our work computers tell us we’re getting too much screen time. And while it can be harder to cut back on medium screen, people seem to be more mindful about their small-screen time—some are even using flip phones. As concern mounts over our collective tech habits and the potential damage of absorbing too much bad news—aka doomscrolling—publisher Penguin Random House saw an opportunity to get people reading with its new campaign, “Slow Down, Read a Book.” “I think reading is positioned to help people escape and help people think more deeply, and help people relax. And it’s almost a foil to social media in that way,” Carly Gorga, director of creative strategy, brand marketing at Penguin Random House, told us.

FY2022 fourth quarter service performance scores covering July 1 through Aug. 26 included: *First-Class Mail: 93.1 percent of First-Class Mail delivered on time against the USPS service standard, consistent with performance from the fiscal third quarter. *Marketing Mail: 94.5 percent of Marketing Mail delivered on time against the USPS service standard, consistent with performance from the fiscal third quarter. *Periodicals: 86.7 percent of Periodicals delivered on time against the USPS service standard, consistent with performance from the fiscal third quarter.

Average student spending on college course materials declined during the 2021-2022 school year according to reports from two leading independent research firms. The most recent report from Student Watch, which is funded by the National Association of College Stores Foundation, found that student spending went from $456 during the 2020-2021 academic year to $339 for the 2021-2022, a decline of 26 percent. Similarly, independent research firm Student Monitor found that average student spending on college course materials, including textbooks and digital materials, declined 22 percent going from $405 last year to an average of $314 for the 2021-2022 academic year. “This year’s average course material spending is the lowest we’ve recorded over the past 15 years,” said Lacey Wallace, Research Analyst at the National Association of College Stores.

For the second quarter, the Company reported net income of $42.0 million, or $0.34 per diluted share, compared to net income of $26.2 million, or $0.21 per diluted share, for last year's second quarter. For the second quarter, net sales were $558.7 million compared to $472.1 million in last year's second quarter. This 18.4% improvement primarily reflects a comparable sales increase of 19.5%, partially offset by 26 permanent net store closures since last year's second quarter. The 19.5% comparable sales improvement was driven by an increase in transaction count and higher average dollar sale.

As students and teachers nationwide head back to school, learning technology company HMH today announced major enhancements to Ed, HMH’s connected teaching and learning platform, that will offer an even more streamlined experience to empower educators and engage students. Seamless integrations with Google Classroom and Clever, as well as refinements and new features to many of HMH’s core, supplemental and intervention solutions and professional learning services, provide powerful connected teaching and learning experiences that drive positive outcomes—all from one platform. “At HMH, we know that an innovative, connected approach is what educators need to make the most of their time and resources and meet all students where they are,” said Greg Collins, SVP of Platform at HMH. “This back-to-school, a streamlined Ed experience will equip students, teachers and administrators with powerful integrations like Google Classroom and Clever, enhanced embedded assessment, joint solutions like Amira + Saxon Phonics & Spelling and evolve the overall HMH platform experience.”

*Domestic revenue of $9.57 billion decreased 13.1% versus last year primarily driven by a comparable sales decline of 12.7%. *Domestic online revenue of $2.97 billion decreased 14.7% on a comparable basis, and as a percentage of total Domestic revenue, online revenue was 31.0% versus 31.7% last year. *Domestic gross profit rate was 22.0% versus 23.7% last year. The lower gross profit rate was primarily due to: (1) lower services margin rates, including pressure associated with the Best Buy Totaltech membership offering; (2) lower product margin rates, including increased promotions; and (3) higher supply chain costs. *Domestic GAAP SG&A was $1.73 billion, or 18.1% of revenue, versus $1.85 billion, or 16.8% of revenue, last year. *International revenue of $760 million decreased 9.3% versus last year. This decrease was primarily driven by a comparable sales decline of 4.2% in Canada and the negative impact of approximately 420 basis points from foreign currency exchange rates. *International gross profit rate was 23.4% versus 24.3% last year. The lower gross profit rate was primarily driven by lower product margin rates.

The Press of Atlantic City is launching what it says is a hyperlocal newspaper: The Current of Linwood, Northfield and Somers Point. It will arrive in every mailbox in those communities in the first week of October, wrote W.F. “Buzz” Keough. the executive editor of The Press of Atlantic City, on Saturday. However, the Press is ceasing publication of six remaining weekly Currents and in Atlantic and Cape May counties. “We don’t make this decision lightly: The Press has had a role in publishing the Currents/Gazettes since 1997,” Keough reports.

FY2022 fourth quarter service performance scores covering July 1 through Aug. 19 included: *First-Class Mail: 93.0 percent of First-Class Mail delivered on-time against the USPS service standard, consistent with performance from the fiscal third quarter. *Marketing Mail: 94.5 percent of Marketing Mail delivered on-time against the USPS service standard, consistent with performance from the fiscal third quarter. *Periodicals: 86.8 percent of Periodicals delivered on-time against the USPS service standard, consistent with performance from the fiscal third quarter.

Second Quarter Fiscal 2022 - Financial Results *Net sales of $3.86 billion, down 8% compared to last year. *Comparable sales were down 10% year-over-year. *Online sales declined 6% compared to last year and represented 34% of total net sales. *Store sales declined 10% compared to last year. The company ended the quarter with 3,390 store locations in over 40 countries, of which 2,799 were company operated. *Reported operating loss was $28 million in the quarter; reported operating margin of (0.7%). *Reported net loss of $49 million.

For the Second Quarter of Fiscal 2022 *Net sales increased 16.8% to $2.3 billion compared to $2.0 billion in the second quarter of fiscal 2021 due to the favorable impact from the continued resilience of the beauty category, the impact of new brands and product innovation, and the easing of COVID-19 restrictions compared to the second quarter of fiscal 2021. *Comparable sales (sales for stores open at least 14 months and e-commerce sales) increased 14.4% compared to an increase of 56.3% in the second quarter of fiscal 2021, driven by an 8.3% increase in transactions and a 5.6% increase in average ticket. *Gross profit increased 16.3% to $928.2 million compared to $798.0 million in the second quarter of fiscal 2021. As a percentage of net sales, gross profit decreased to 40.4% compared to 40.6% in the second quarter of fiscal 2021, primarily due to lower merchandise margin and higher inventory shrink, partially offset by leverage of fixed costs and strong growth in other revenue. *Operating income increased 17.8% to $391.4 million, or 17.0% of net sales, compared to $332.3 million, or 16.9% of net sales, in the second quarter of fiscal 2021. *Net income increased 17.8% to $295.7 million compared to $250.9 million in the second quarter of fiscal 2021.

After more than 100 years in business, MIDLAND has grown from a single Midwest location to one of the largest independent paper and packaging distributors in the United States. Headquartered in Wheeling, Illinois, MIDLAND provides value added solutions for the efficient distribution of printing and publication papers, packaging supplies and equipment, and facility supplies. Through experienced recommendations and intimate knowledge of these industries, the company helps clients find the best solution for their needs at the most competitive pricing in today’s ever-changing marketplace. MIDLAND focuses its attention on adding value to paper and packaging programs by using its strong mill relationships and expertise in paper, packaging, design, printing and mailing to help clients exceed their marketing and financial objectives. And when it comes to sustainability, MIDLAND’s commitment is evident in both principle and practice. “More and more, we see the current business climate driving our print and packaging customers to assess their impact on the planet,” says MIDLAND National President David Goldschmidt. “Companies turn to MIDLAND because they want a responsible supplier who conducts business ethically and can help them achieve their corporate sustainability goals.

A summary of results for the second quarter ended July 30, 2022 as compared to the second quarter ended July 31, 2021: *Net sales of $805 million, down 7% as compared to last year on a reported basis and down 4% on a constant currency basis. *Gross profit rate of 57.9%, down approximately 730 basis points as compared to last year. The year-over-year decrease was primarily driven by higher product costs, which contributed 750 basis points, and the adverse impact of exchange rates, which accounted for 30 basis points. These impacts where partially offset by higher AUR at Abercrombie. *Operating expense, excluding other operating income, net, was up 4% compared to last year. The increase was driven primarily by inflation and higher digital fulfillment expenses partially offset by lower incentive-based compensation. Operating expense as a percentage of sales increased to 58.0% from 52.1% last year. *Operating loss of $2 million and $0 million on a reported and adjusted non-GAAP basis, respectively, as compared to operating income of $115 million and $116 million last year, on a reported and adjusted non-GAAP basis, respectively.

Inspired by input from its educator users, Savvas Learning Company is excited to announce that for back to school it has updated its award-winning Savvas Realize platform with powerful enhancements and a new user experience intended to save teachers time, freeing them up to focus more on classroom instruction with their students. Savvas Realize, recognized as one of the most innovative learning management systems (LMS) in the industry and the winner of seven edtech awards, has now been made even easier to use with intuitive navigation for both teachers and students and time-saving tools for teachers to make the most of their teaching day. These updates include a more streamlined interface with faster grading workflows, improved classroom management tools, and greater integration with the edtech tools that schools use most. “Teachers have a lot on their plates, especially this school year with trying to get their students caught up. They need an LMS that’s easy to navigate for them and their students — one that provides robust support for personalized learning and the right tools to make their jobs easier,” said Bethlam Forsa, CEO of Savvas Learning Company. “After a year-long collaboration with nearly 100 educators, our highly acclaimed Savvas Realize LMS has been updated with significant enhancements to provide greater simplicity, shareability, and interoperability — helping teachers be more productive in the classroom.”

Urban Outfitters, Inc. announced net income of $59 million and earnings per diluted share of $0.64 for the three months ended July 31, 2022. For the six months ended July 31, 2022, net income was $91 million and earnings per diluted share were $0.96. Total Company net sales for the three months ended July 31, 2022, increased 2.2% over the same period last year to a record $1.18 billion. Total Retail segment net sales increased 1%, with comparable Retail segment net sales also increasing 1%. The increase in Retail segment comparable net sales was driven by low single-digit positive digital channel sales, while retail store sales were flat. By brand, comparable Retail segment net sales increased 8% at the Free People Group and 7% at the Anthropologie Group and decreased 9% at Urban Outfitters. Wholesale segment net sales increased 1%, driven by a 4% increase in Free People Group wholesale sales, partially offset by a decline in Urban Outfitters wholesale sales. Nuuly segment net sales increased by $18.8 million driven by a significant increase in our subscribers.

SECOND QUARTER 2022 SUMMARY *Total Company net sales increased 12.0 percent and GMV increased 12.2 percent compared with the same period in fiscal 2021. *Gross profit, as a percentage of net sales, of 35.2 percent increased 65 basis points compared with the same period in fiscal 2021 primarily due to leverage on buying and occupancy costs, partially offset by higher markdown rates. *Ending inventory increased 9.9 percent compared with the same period in fiscal 2021, versus a 12.0 percent increase in sales. *Selling, general and administrative expenses, as a percentage of net sales, of 32.8 percent decreased 15 basis points compared with the same period in fiscal 2021 primarily due to leverage on higher sales, partially offset by higher labor expense. *Earnings before interest and tax ("EBIT") was $202 million in the second quarter of 2022, compared with $151 million during the same period in fiscal 2021, primarily due to higher sales, partially offset by higher markdowns and higher labor expense.

The ODP Corporation announced that, subject to certain closing conditions, it has reached a definitive agreement for a sale and partial leaseback of its Boca Raton-based corporate headquarters. Upon completion of a sale, The ODP Corporation expects to lease a portion of the building’s office space from the new owner and to continue to occupy it as the company’s headquarters for a minimum of two years. “I’m excited about this opportunity and our commitment to maintaining Boca Raton as our headquarters and base of operations while continuing to embrace our low-cost flexible business model,” said Gerry Smith, chief executive officer for The ODP Corporation. “This is another example of how we are committed to leveraging our assets in the best way possible, enhancing our balance sheet and identifying smart ways to drive The ODP Corporation’s long-term growth and success.”

Whether you are an avid reader or the occasional book worm, identifying your next page-turner can sometimes be a challenge. Today we’re excited to introduce the next chapter for the Walmart book department: the Walmart Book Club. Five titles will be chosen annually as part of the Walmart Book Club with four unveiled seasonally throughout the year leading up to the highest honor, the Pick of the Year. Our team of book merchants will select titles based on reading trends, relevancy and industry market data – helping to identify exciting titles Walmart customers are sure to love. Focused on adult readers, select titles will be available to shop both in stores and online, making it easy to join no matter where you live. To get involved, all customers need to do is keep an eye out for the Walmart Book Club sticker on the cover of the book or the online product page.

*Comparable sales down 1.5% on an owned basis and down 1.6% on an owned-plus-licensed basis; up 4.3% and 4.4%, respectively, versus the second quarter of 2019. *Digital sales decreased 5% year-over-year while increasing 37% versus the second quarter of 2019. *Macy’s comparable sales were down 2.9% on an owned basis and down 2.8%, on an owned-plus-licensed basis. *Bloomingdale’s comparable sales on an owned basis were up 8.8% and on an owned-plus-licensed basis were up 5.8%. *Bluemercury comparable sales were up 7.6% on an owned and owned-plus-licensed basis. *Inventory turnover, on a trailing twelve-month basis, was relatively flat to 2021 and improved 15% over 2019. *Gross margin for the quarter was 38.9%, down from 40.6% in the second quarter of 2021.

Dotdash Meredith is giving up a deal with the state of Iowa in which it was to receive tax incentives for hiring and keeping workers in Des Moines. The publishing company was to receive $460,000 in tax credits and refunds under the arrangement, in return for adding 41 employees by March 2021 for at least $29.12 per hour and retaining them through March 2023, according to the Des Moines Register. Dotdash Meredith informed the Iowa Economic Development Authority (IEDA) in an August 10 letter that it would close the tax-incentive contract. Dotdash Meredith, facing reduced ad spending, suffered a $28 million operating loss in Q2.

FY2022 fourth quarter service performance scores covering July 1 through Aug. 12 included: *First-Class Mail: 93.0 percent of First-Class Mail delivered on time against the USPS service standard, consistent with performance from the fiscal third quarter. *Marketing Mail: 94.3 percent of Marketing Mail delivered on time against the USPS service standard, consistent with performance from the fiscal third quarter. *Periodicals: 86.5 percent of Periodicals delivered on time against the USPS service standard, consistent with performance from the fiscal third quarter.

The Association of American Publishers (AAP) today released its StatShot report for June 2022 reflecting reported revenue for Trade (Consumer Books), Higher Education Course Materials, and Professional Publishing. The report does not include PreK-12 revenue due to delays in data collection but will be updated as soon as that data becomes available. Total revenues across all categories, excluding PreK-12, for June 2022 were down 0.2% as compared to June 2021, coming in at $895.0 million. Year-to-date revenues were down 1.6%, at $5.5 billion for the first six months of the year.

Port congestion continues to haunt global trade, spreading fresh fears among exporters andimporters over whether massive amounts of cargo will be delivered on time for the busy, year-end shopping season. Supply chains never fully recovered from the pandemic shock when goods transported by seawere delayed and shipping prices soared. Now freight rates are falling, but cargo is still delayed at choked European and American ports. “Ships are still a gamble not worth taking,” said Abbie Durkin, the owner of Palmer & Purchase, awomen’s clothing and accessories boutique with stores in New York. “We are fl ying in our entirewinter collection to make sure it arrives before Christmas.”

“Second quarter results were impacted by a weakening macro environment, high inflation and dampened consumer spending, which especially pressured our middle-income customers. We have adjusted our plans, implementing actions to reduce inventory and lower expenses to account for a softer demand outlook. Kohl’s has navigated difficult periods in the past and I am confident in our ability to successfully manage through the current uncertainty. I want to thank our incredible associates around the country for their commitment to Kohl’s and for providing excellent service to our customers every day. We continue to execute on our transformation strategy and are pleased to deliver outsized performance in the nearly 600 stores which have been refreshed and elevated, featuring Sephora as a key cornerstone,” said Michelle Gass, Kohl’s chief executive officer. “While 2022 has turned out to be more challenging than initially expected, Kohl’s remains a financially strong company with significant long-term growth potential. Our $500 million accelerated share repurchase underscores our steadfast confidence in Kohl’s future and focus on creating shareholder value. We also remain firmly committed to our current dividend,” said Gass.

A new guide from Royal Mail Marketreach explains the sustainable benefits of mail and how those benefits can be boosted by the right choice of materials and suppliers. For some time now, direct mail has been one of the most sustainable forms of marketing available to companies and organisations. The fact that the paper industry uses a large proportion of renewable energy to process paper sourced from carefully managed forests combined with Europe’s high paper recycling rate means that mail is a key part of the circular economy. But while most people in the paper industry are fully aware of its environmental credentials, others in the wider marketing sphere aren’t, so Royal Mail Marketreach and industry body the Strategic Mailing Partnership have teamed up to produce a handy guide to making mail campaigns more sustainable.

The Book Manufacturers’ Institute (BMI) released the August results for its monthly survey on capacity and lead times for soft cover and hard cover books. As demand has skyrocketed and supply chain woes continue to hamper all segments of manufacturing, BMI put together the survey to get a better idea of what manufacturers were facing and what publishers should expect. This month showed capacity and lead times all going up a bit. According to responses regarding hard cover books, the average manufacturer was running at 90% of their capacity, up from July’s 84%. The average lead time for completed hard cover books went up from 74 to 85 days. For soft cover books, capacity usage went up slightly to 92% and the average lead time went up from 56 days to 62 days, based on 16 responses.

Join J.Schmid President & CCO Brent Niemuth at the Fall NEMOA Summit in Boston Harbor, MA where he'll deliver a keynote session on Messaging That Matters: Creating Powerful Content Across Channels. But that's not all! In addition to the Keynote Address, Brent will lead a hands-on workshop with Cindy Marshall, Founder & CEO of SHINE Strategy and Jason Baer, VP Sales & Marketing of Vermont Teddy Bear. This interactive session will explore the latest trends in Print Marketing. It's perfect for marketers who want to do a deep-dive into Strategic Planning, Merchandising, Creative & Messaging, Formats, and Circulation. Space is limited so register now! If you're not already familiar with NEMOA, here's what you need to know: • It's the only summit for true omnichannel marketers, helping brands harness the power of print in the marketing mix. • The thought-provoking discussions and enriching sessions are 100% guaranteed to drive actionable insights. • And one more thing...we can offer you a 15% discount with code BRD15! That's right, it's a perk we get as a board member. So if you're interested in going, register now at: https://nemoaevent.org/?utm_source=marketo&utm_medium=NEMOA&utm_campaign=website

FY2022 fourth quarter service performance scores covering July 1 through August 5 included: *First-Class Mail: 93.1 percent of First-Class Mail delivered on time against the USPS service standard, consistent with performance from the fiscal third quarter. *Marketing Mail: 94.2 percent of Marketing Mail delivered on time against the USPS service standard, consistent with performance from the fiscal third quarter. *Periodicals: 86.3 percent of Periodicals delivered on time against the USPS service standard, consistent with performance from the fiscal third quarter.

The planned peak-season pricing, which was approved by the Governors of the Postal Service on Aug. 9, would affect prices on the following commercial and retail domestic competitive parcels: Priority Mail Express (PME), Priority Mail (PM), First-Class Package Service (FCPS), Parcel Select and USPS Retail Ground. International products would be unaffected. Pending favorable review by the PRC, the temporary rates would go into effect at 12 a.m. Central on Oct. 2, and remain in place until 12 a.m. Central Jan. 22, 2023. This seasonal adjustment will bring prices for the Postal Service’s commercial and retail customers in line with competitive practices. details at: https://about.usps.com/newsroom/national-releases/2022/0810-usps-announces-proposed-temporary-rate-adjustments.htm

Kohl’s is making holiday shopping even easier and more efficient this year. New for the 2022 season, Kohl’s Self-Pickup service is now available on eligible Kohls.com orders at all of Kohl’s more than 1,100 stores nationwide, furthering the strength of the Company’s omnichannel foundation. As a part of Kohl’s commitment to an industry-leading shopping experience, the new Self-Pickup service creates a hassle-free In-Store Pickup alternative for a faster pickup, and no lines in sight. With 80% of Americans living within 15 miles of a Kohl’s store, millions of shoppers can now take advantage of this convenience on eligible In-Store Pickup orders. Ready within two hours, shoppers who select “In-Store Pickup” for their online order will receive a “Ready for Pickup” email that will specify if the order will be found in the designated Self-Pickup area. Customers will then be directed to the area within the store for a quick email-guided pickup process. More details at: https://investors.kohls.com/news-releases/news-details/2022/Kohls-Announces-Expansion-of-Self-Pickup-to-All-Stores-Nationwide---Just-in-Time-for-Holiday-Shopping/default.aspx

The Postal Service had adjusted loss of $459 million for the quarter, compared to an adjusted loss of $41 million for the same quarter last year. Adjusted loss excludes the impact of the PSRA, retiree health benefits expense, non-cash workers' compensation adjustments for the impacts of actuarial revaluation and discount rate changes, which are outside of management's control, and amortization expenses for the Civil Service Retirement System (CSRS) and the Federal Employee Retirement System (FERS) unfunded liabilities. On a U.S. generally accepted accounting principles (GAAP) basis, the Postal Service had net income of $59.7 billion for the quarter, compared to net loss of $3.0 billion for the same quarter last year, due almost exclusively to the non-cash impact of the PSRA. Marketing Mail revenue increased $324 million, or 9.4 percent, compared to the same quarter last year, on volume growth of 545 million pieces, or 3.5 percent. First-Class Mail revenue was essentially flat, compared to the same quarter last year, despite a volume decline of 620 million pieces, or 5.1 percent. Shipping and Packages revenue decreased $85 million, or 1.1 percent, compared to the same quarter last year, on a volume decline of 92 million pieces, or 5.0 percent, compared to the same quarter last year.

Q2 2022 HIGHLIGHTS * Dotdash Meredith revenue increased 568% year-over-year to $490 million, benefitting from the Meredith acquisition. o Digital revenue was $235 million and Print revenue was $260 million. o Operating loss of $28 million and Adjusted EBITDA of $39 million in Q2 2022. * Angi Inc. revenue increased 23% year-over-year to $516 million, the 7th consecutive quarter of double-digit growth and highest quarterly growth since 2018. o Angi Ads and Leads revenue increased 5% year-over-year, the first quarter of growth since Q2 2021. o Angi Services revenue was $151 million o Monetized Transactions were 4.7 million and Transacting Service Professionals were 220,000. o Operating loss improved to $21 million (compared to a loss of $33 million in Q2 2021) and Adjusted EBITDA improved to a profit of $10 million (compared to a loss of $4 million in Q2 2021).

Fiscal 2022 Full Year and Fourth Quarter Key Financial: *Fiscal 2022 full year revenues and net income were records at $10.39 billion and $760 million, respectively. Revenues grew 11% compared to $9.36 billion in the prior year and net income increased 95% compared to $389 million in the prior year *Full year Total Segment EBITDA was $1.67 billion, also a record and a 31% increase compared to $1.27 billion in the prior year. Reported EPS were $1.05 for the full year compared to $0.56 in the prior year *Fourth quarter revenues were $2.67 billion, a 7% increase compared to $2.49 billion in the prior year, while net income was $127 million, a substantial improvement from a net loss of $(15) million in the prior year *Fourth quarter Total Segment EBITDA was $315 million, a 50% increase compared to $210 million in the prior year. Reported EPS were $0.19 for the fourth quarter compared to $(0.02) in the prior year – Adjusted EPS were $0.37 compared to $0.16 in the prior year *Digital Real Estate Services revenues for the fiscal year grew 25% despite facing tough prior year comparisons, with 37% and 11% revenue growth at REA Group and Move, respectively *Book Publishing revenues grew 10% in the fiscal year, driven by the acquisition of the HMH Books and Media segment and continued strong consumer spending, which remains above pre-pandemic levels

No matter which way you look at it, sales of mass market paperbacks have been in steady decline since 2017. NPD BookScan data shows that unit sales fell 31.5% in 2021 compared to 2017, while the Association of American Publishers put the decline in dollar sales at a more disturbing 42.7% in 2020. Both data sets show more declines occurring in 2022. To be sure, the mass market paperback format has experienced ups and downs in the past. The last time PW wrote about the prospects for mass market paperbacks, in October 2014, the format was trying to recover from the shock it suffered due to the explosion of cheap e-books, especially in such important areas as romance and science fiction and fantasy. (Asked last week, during the DOJ’s trial to prevent PRH from acquiring S&S, whether he had made reductions in title output following the Random House–Penguin merger in 2013, PRH CEO Markus Dohle pointed to adjusting the number of mass market paperbacks published by Berkley/NAL in response to the flood of 99¢ and $1.99 self-published e-books that hit the market, luring away readers of genre fiction.)

FY2022 fourth quarter service performance scores covering July 22 through July 29 included: *First-Class Mail: 93.2 percent of First-Class Mail delivered on time against the USPS service standard, consistent with performance from the fiscal third quarter. *Marketing Mail: 94 percent of Marketing Mail delivered on time against the USPS service standard, a decrease of 0.6 percentage points from the fiscal third quarter. *Periodicals: 86.3 percent of Periodicals delivered on time against the USPS service standard, consistent with performance from the fiscal third quarter.

The expansion of the Old Navy business in Latin America continues as the brand announced Grupo Axo as Gap Inc’s exclusive franchisee for Old Navy in Mexico, just weeks after the brand’s debut of its first Caribbean store in the Dominican Republic through a franchise partnership with AR Retail S.A. The Dominican Republic serves as an important market for the brand and is another leg of Old Navy’s Central American expansion. The Dominican Republic store opening marks the third Old Navy franchise market launch in Latin America this year, following the brand’s most recent openings in Chile and El Salvador.

In times of crisis, we believe in stepping forward to help communities in need. And as we watched floodwaters rise in Kentucky, we knew it was again time to take action. Hundreds of people – from our associates to community members who make our stores part of their daily routine – have lost their homes, lost power or lost access to clean water. That’s where we decided to place our focus. Walmart, Sam’s Club and the Walmart Foundation have committed $750,000 in water, food and funding to organizations providing relief, and we’re working to make essential resources like showers and laundry available in our parking lots and supporting shelters. Since last week, more than 20 Walmart trucks carrying water and essential supplies have arrived in some of the hardest-hit Kentucky communities. And there are more on the way.

Second Quarter 2022 Financial Highlights: *Total revenues of $748.7 million decreased 6.9% compared to the second quarter of 2021 *Same store revenues(1) decreased 6.3% compared to the second quarter of 2021 *Total digital revenues were $261.8 million or 35% of total revenues, up 1.5% over the same period in the prior year on a same store(1) basis *Net loss attributable to Gannett of $53.7 million, a margin loss of 7.2% *Cash used for operating activities of $30.7 million

Gross profit increased 5% to $219.1 million, or 52.2% of sales, compared to $209.1 million, or 58.5% of sales, in the second quarter of 2021. The 630 basis point decrease in gross margin was primarily driven by higher inbound freight, higher product costs and the unfavorable impact of foreign currency exchange rates, partially offset by price increases. Selling, general, and administrative (“SG&A”) expenses increased 10% to $150.8 million, compared to $136.7 million in the second quarter of 2021. As a percentage of sales, SG&A expenses decreased 230 basis points to 35.9% from 38.2% in the prior year period, primarily driven by non-variable expense leverage on higher sales, partially offset by higher variable expenses driven by higher distribution and logistics costs. Operating income decreased 6% to $68.3 million, or 16.3% of sales, compared to $72.4 million, or 20.2% of sales during the prior year quarter. Net income decreased 18% to $46.3 million, or 11.0% of sales, compared to $56.2 million, or 15.7% of sales in the prior year quarter; Net income per diluted share decreased 16% to $0.53, compared to $0.63 per diluted share in the prior year quarter.

Total revenues for the second quarter of 2022 increased 11.5 percent to $555.7 million from $498.5 million in the second quarter of 2021. Subscription revenues increased 13.1 percent to $383.6 million, advertising revenues increased 4.1 percent to $117.4 million and other revenues increased 17.6 percent to $54.7 million. Total operating costs increased 19.6 percent in the second quarter of 2022 to $504.0 million compared with $421.4 million in the second quarter of 2021, while adjusted operating costs increased 18.2 percent to $479.5 million from $405.6 million in the second quarter of 2021.

Total reported sales for the second quarter of 2022 were $2.0 billion, down 2% compared to the second quarter of 2021 primarily due to fewer retail stores in service and greater market-wide challenges related to the sourcing and supply chain environment relative to last year. Retail Division sales were lower primarily due to 71 planned store closures and lower store traffic, which was offset by higher sales in our BSD Division. The Company drove stronger business-to-business (B2B) sales through its contract channel as more businesses continued to return to the office, which was partially offset by lower sales through its eCommerce channel compared to a year ago. The Company reported operating income of $28 million in the second quarter of 2022, down compared to operating income of $30 million in the prior year period. GAAP operating results in the second quarter of 2022 included $26 million of charges consisting primarily of $23 million in merger, restructuring and other operating costs largely associated with activities related to the Company’s previously planned separation.

The Association of American Publishers (AAP) released its StatShot report for May 2022 reflecting reported revenue for Trade (Consumer Books), Higher Education Course Materials, and Professional Publishing. The report does not include Pre-K revenue due to delays in data collection but will be updated as soon as that data becomes available. Total revenues across all categories, excluding PreK-12, for May 2022 were down 3.7% as compared to May 2021, coming in at $837.8 million. Year-to-date revenues were down 2.5%, at $4.6 billion for the first five months of the year. Trade (Consumer Books) sales were down 3.3% in May, coming in at $673.1 million. eBook revenues were down 5.7% for the month as compared to May 2021 for a total of $82.5 million. The Downloaded Audio format was up 6.2% for May, coming in at $65.2 million in revenue. Physical Audio was down 46.4% coming in at $1.2 million. Year-to-date Trade revenues were down 1.4%, at $3.5 billion for the first five months of the year. Hardback revenues were down 7.5%, coming in at $1.2 billion; Paperbacks were up 8.7%, with $1.3 billion in revenue; Mass Market was down 25.6% to $73.9 million; and Special Bindings were up 4.0%, with $68.8 million in revenue.