Book Manufacturers’ Institute Announces 2024 Award Winners and New Board Members

Postmaster General Louis DeJoy said the U.S. Postal Service will be forced to initiate “uncomfortable” price increases for market dominant USPS products such as first-class mail, marketing mail and periodicals, while shippers using Parcel Select Ground can benefit from use of cubic pricing. The USPS’s new pricing schedule goes into effect July 10, with the agency warning that twice-yearly pricing adjustments will be the norm going forward, even as the delivery service standard has slowed. The USPS delayed implementation of the service slowdown until after the peak holiday season. The recent Postal Reform Act’s undoing of mandated prefunding of retiree healthcare benefits will save $50 billion over 10 years by switching pensioners to Medicare – which many argue causes other economic liability issues. But DeJoy said that still leaves a projected $110 billion dollar USPS loss over that period.

Fourth Quarter 2022 Results - Net sales decreased 7.2% year-over-year, to $5.8 billion, with comparable sales down 6.6%. Gross margin as a percentage of net sales was 23.0%, a decrease of 1,016 basis points. Clearance markdowns impacted margin by approximately 750 basis points and product cost inflation impacted margin by approximately 200 bps. Net loss was $273 million, or ($2.49) per diluted share. This compares to net income of $299 million, or $2.20 per diluted share in the prior year. Fiscal Year 2022 Results - Net sales decreased 7.1% year-over-year, to $17.2 billion, with comparable sales down 6.6%. Gross margin as a percentage of net sales was 33.2%, a decrease of 485 basis points. Net loss of $19 million, or ($0.15) per diluted share. This compares to net income of $938 million, or $6.32 per diluted share, and adjusted net income of $1.1 billion, or $7.33 per diluted share, in the prior year.

Guitar Center expects to emerge from Chapter 11 bankruptcy by Dec. 31 after recently winning approval in federal bankruptcy court for its reorganization plan, the company said in a press release. According to the musical instrument retailer, the plan allows it to shed more than $800 million in debt. At the same time, Guitar Center has raised $350 million in new secured notes and expects to have a new asset-based facility worth up to $375 million, as well as $165 million in new equity investments.