Harper Sales Up, Earnings Even  

by Jim Milliot -- Publishers Weekly, 5/7/2008 4:28:00 PM

Total sales at HarperCollins rose 3.8% in the third quarter ended March 31, to $302 million, while operating income held even at $29 million. HC CEO Jane Friedman said that after a few difficult quarters due to tough comparisons, the children’s division had a strong period with sales up 50% and profits jumping by nearly 500%. Among the titles that sold well in the quarter were Fancy Nancy, Bonjour Butterfly by Jane O’Connor, The Chronicles of Narnia: Prince Caspian and Read All About It by Laura and Jenna Bush, which Friedman predicted will sell well through the year. The U.K. and Canada also made solid contributions.

Friedman attributed the flat profit performance mainly to softness in the CBA market. Moe Girkins was named head of HC’s Zondervan subsidiary last December, and Friedman said that all aspects of Zondervan are under review. Friedman noted that Zondervan did not cutback its list the way other HC units did in the past and that it is maybe publishing too many titles. She also repeated comments made last week that books aimed at the CBA are underpriced. Friedman noted that with more religious books being sold through general retailers instead of traditional CBA channels the content and look of religious books needs to change. “We need to make some adjustments,” Friedman said.

Even with softness in the CBA market, Friedman said HC is poised for a strong finish to fiscal 2008. Books she thinks will do well include James Frey’s Bright Shining Morning, Sidney Poitier’s Life Beyond Measure and Stolen Innocence: My Story of Growing Up in a Polygamous Sect, Becoming a Teenage Bride, and Breaking Free of Warren Jeffs by Elissa Wall, who is set for an appearance on Oprah. Smaller, less expensive editions of Dangerous Book for Boys and The Daring Book for Girls are both expected to sell well this spring.

With gains in HC’s two most recent quarters, the company has almost overcome a bad first quarter. For the nine month period sales are down 1.3%, to $1.04 billion, while operating income is off 4.3% to $132 million. “We’re getting to where we want to be,” Friedman said.