Lower overhead and promotional costs combined with strong sales for its major authors led to a solid performance in Harlequin’s North American retail segment, which was the publisher’s strongest unit in 2007. Debbie Macomber had three big hits: 74 Seaside Avenue, Back on Blossom Street and Susannah’s Garden. Linda Lael Miller’s McKettrick trilogy gave a boost to sales in the first half of the year, said Craig Swinwood, executive v-p of the retail division. Susan Wiggs had a breakout title with The Winter Lodge. Harlequin’s newer imprints, Spice and Luna, also contributed to gains in the year. The soft spot was sales of midlist authors, because of the difficulty in getting shelf space, Swinwood said.

2006 2007 % chnge
Sales C$471.8 C$462.7 -1.9%
Op. income 56.3 60.6 7.6
Op. margin 11.9% 13.1% -