Thomas Nelson reported a "soft second quarter" during a financial report released this week, but the company's president said it was expected because August is a slow month for retail sales.

Net revenue for the six months ending Sept. 30 was $110.9 million compared to $105.7 million in the prior year, a 5% gain. Net revenue was $61.9 million for the three months ending Sept. 30 compared to $63.8 million in the prior year's comparable period, a decline of 3%. Net income for the six months ending Sept. 30 was $8.3 million compared to $7.7 million in the prior year, an 8% gain. Net income was $6.4 million for the three months ending Sept. 30 compared to $6.6 million in the prior year's comparable period, a decline of 3%.

Michael Hyatt, president and COO of Thomas Nelson, said the company's second quarter was expected "to be a little soft, and it was." He added that Thomas Nelson's "product-release calendar is weighted toward the second half this year. Also, Census Bureau data suggests that August was the slowest month of the year to date for retail sales at bookstores across the country.

"A decline in sales to consumers can encourage our direct customers, booksellers, to return slow-moving inventory in order to free up their capital to invest in Christmas-season products," Hyatt said. "I believe that was one reason why our merchandise returns, and, hence, net revenues and profits, came under pressure in the period. However, with the upcoming titles and products we have planned for the remainder of the year, we expect to deliver a solid financial performance for fiscal 2005."

• Prev
• Next