Simon & Schuster profits dropped for the second quarter, down twelve percent. Operating income took a slide of thirty-two percent. Sated reason: "best-selling titles...did not match contributions from prior year titles." The same thing happened last quarter.
The status of struggling Borders "is of concern." Conservative buying has meant fewer titles and fewer books for consumers to buy, raising the question of a vicious circle. The parent company is assisting in stocking decisions, based on their own information.
Although the company is moving ahead with digital initiatives, they are nowhere near becoming a source of profit, but more a long-term bet. However, the CBS-owned company is building its sales website, in a bid to capture some of the on-line market for books and other published materials. Its press releases reveal a strong intention to tie in their products with the people, features, and promotion by the broadcasting network.