American Media, Inc. announced that it has received a final payment of $19 million as part of its agreement to sell Shape to Meredith Corporation. This payment closes the three-year profit sharing agreement between the companies. AMI received an initial payment of $60 million in 2015. The total valuation of $79 million represents a seller’s multiple of more than 13x Shape’s earnings on a stand-alone basis at the time of the acquisition and a buyer’s multiple of 8x on a contribution basis. Click Read More below for additional information.
Brick-and-mortar retailers should look to impulse purchases as a focal area for growth. According to a new report from general merchandise and health-beauty-and-wellness trade association GMDC, books, trial and travel, and grilling are continually beating total store growth within physical retailers — and each of these categories represents products commonly considered impulse purchases. The growth in sales among these three product categories reinforces the impulse purchase as a focal area for growth among brick-and-mortar retailers, GMDC advised. Click Read More below for additional information.
SECOND QUARTER SUMMARY: • Second quarter net earnings were $162 million compared with $110 million during the same period in fiscal 2017. The increase was driven primarily by higher sales volume, a lower effective tax rate and the impact of the new revenue recognition standard as it relates to the timing of the Anniversary Sale. • In Full-Price, comparable sales increased 4.1 percent. The top-ranking merchandise categories were Kids' Apparel and Beauty. • In Off-Price, comparable sales increased 4.0 percent. • Sales from Nordstrom Rewards customers represented 58 percent of second quarter sales, compared with 56 percent a year ago. • Gross profit, as a percentage of net sales, of 35.0 percent increased 91 basis points compared with the same period in fiscal 2017. Click Read More below for additional information.
This year has brought forth a renewed optimism in print, but times are still tough for an industry that once had more advertising demand than inventory to sell. Last year, magazine media lost a reported $417.5 million in print ad revenue, a 6.4-percent drop from the previous period. So why exactly are we hearing anecdotes about print stabilizing or even rebounding? Well, perhaps it’s due in part to brands like Meredith’s Parents, which has figured out a good formula to make print viable in 2018. The September issue of Parents is up 20 percent in print ad pages sold versus 2017. Its 100 pages, the most the brand has sold since 2015, are in part thanks to booking 10 new advertisers from food to retail to home goods. Click Read More below for additional information.
Rise Interactive, one of the fastest-growing digital marketing agencies in the world, majority owned by Quad/Graphics, announced its ninth consecutive appearance on the annual Inc. 5000, the most prestigious ranking of the nation’s fastest growing companies. The achievement is significant; only 1% of companies ever featured on the list have achieved nine-time honoree status. “To be recognized for the ninth time on the Inc. 5000 list is a reflection of the tremendous work our teams produce for our clients,” said Jon Morris, Founder and CEO of Rise Interactive. “This growth is only possible by continuing to deliver a high ROI for our clients, and having our clients stay with us year in and year out.” Click Read More below for additional information.
Bauer Media is today confirmed as the UK’s biggest selling magazine publisher, with total reported copies circulated of 70.4m in this ABC period. •In the Women’s Weeklies Classics market Bella takes the No 1 spot after another stunning ABC performance – 31 years after it launched. •No 1 in TV listings (the UK’s biggest magazine category by volume) with TV Choice and Total TV Guide. Bauer now accounts for 43.1% of the market. •Garden Answers posts significant double-digital growth. •In the True-Life market Bauer Media extends its leadership with market share of 56.7% with Take a Break in the No 1 position selling 472,000 copies weekly. •Grazia out performs the market both period-on-period and year-on-year •heat celebrates period-on-period and year-on-year increases in market share and out-performs the market. Click Read More below for additional information.
For the second quarter ended Aug. 4, 2018, total net sales decreased 7.5 % to $2.76 billion compared to $2.99 billion for the second quarter ended Jul. 29, 2017. The decline in total net sales was primarily the result of the 141 stores that closed in fiscal 2017. Comparable sales increased 0.3 % for the second quarter. For the second quarter, the Company’s net loss was $101 million, or ($0.32) per share, compared to a net loss of $48 million, or ($0.15) per share in the same period last year. Click Read More below for additional information.
Bookstore sales ended the first six months of 2018 an a positive note with June sales rising 5.3% over June 2017, according to preliminary estimates from the U.S. Census Bureau. Sales in June were $699 million, up from $664 million in 2017. Bookstore sales have largely recovered from a weak January when sales fell 9.1%, due to what some industry observers saw as soft sales at college stores. For the first six months of 2018, sales were down 1.0%, to $4.71 billion, compared to the same period a year ago. For the entire retail sector, May sales were up 2.8% over May 2017 and year-to-date sales rose 5.3% over the first six months of 2017.
Kalmbach Media’s Discover, a consumer-facing science magazine, is producing its first digital-to-print special issue publication (SIP), called Strange Science, which will feature 52 unusual, yet true, science stories, curated from some of Discover’s more popular digital articles. Published as a 100-page digest, the SIP will aim to be a portable source of information that capitalizes on “insatiable curiosity,” while also being compact enough to “throw in a bag, briefcase or backpack and take with you wherever you’re going,” according to Becky Lang, executive editor of Kalmbach Media’s Science Group. Wanting to reach an audience beyond its typical subscriber, the SIP is attempting to lean into the “wow factor” by highlighting fact-backed topics such as which reptiles’ bones glow in the dark and hunting for gold in the galaxy. Click Read More below for additional information.
• Gross revenue was $282.0 million in the second quarter of 2018, an increase of 1% compared to $280.1 million in the second quarter of 2017. Excluding currency impacts, second quarter gross revenue increased 4% compared to the same period of last year. • Gross profit (net revenue) was $64.9 million, or 23.0% of gross revenue in the second quarter of 2018, compared to $70.0 million, or 25.0% of revenue, in the same period of last year. • Net loss for the second quarter of 2018 was $(0.3) million, or $(0.01) per diluted share, compared to net income of $4.4 million, or $0.08 per diluted share in the second quarter of 2017. Click Read More below for additional information.