Postal Service Starts Summer With Strong Service Performance Across All Mail Categories

First Quarter Highlights *Delivered sales of $3.6 billion, up 18.2%, compared to the first quarter of 2021; up 17.9% on a daily, constant currency basis *Expanded gross margin by 245 bps compared to the first quarter of 2021 *Operating earnings of $534 million, up 49.2%, resulting in EPS of $7.07, an increase of 57.8% versus the first quarter of 2021 *Produced operating cash flow of $343 million, up 16.7%; returned $163 million to shareholders through dividends and share repurchases

American Media, Inc. announced that it was further building on its recent investment in Men’s Journal by increasing the brand’s print circulation to 1.25 million, a 66% increase as current readers of Men’s Journal and Men’s Fitness will be receiving Men’s Journal beginning with the November issue. The integration is part of a broader strategic investment in Men’s Journal that also includes a frequency increase to 12 issues per year and enhancements in both the print and digital products. The brands will continue to maintain separate digital destinations at mensjournal.com and mensfitness.com. “It’s clear, as evidenced by numerous third party research studies, that today’s affluent men are looking for, and eager to invest in, curated experiences and adventures,” said Men’s Journal Chief Revenue Officer Jay Gallagher. “AMI believes that Men’s Journal is well-positioned to meet these consumer demands by extending our national footprint and deepening our authority in this space with the addition of even more world-class editorial and the significant improvements in paper quality and trim size, so that we can continue to build on our position as the only destination for adventurous men.” Click Read More below for more of the story.

Sales decreased 4% to $402.6 million, compared to $420.0 million during the same period last year. Sales were unfavorably impacted by $24.5 million due to a recall reserve adjustment. Sales and adjusted sales for the second quarter of 2023 include $12.5 million of sales related to gift card redemptions in connection with recall remedies. Our 2023 results have also been materially adversely impacted by the stop sale of the soft coolers included in the recalls initiated during the first quarter of 2023. Gross profit decreased 2% to $214.8 million, or 53.4% of sales, compared to $219.1 million, or 52.2% of sales, in the second quarter of 2022. Gross profit included a $19.4 million, or 150 basis points, unfavorable impact related to the recall reserve adjustment. Operating income decreased 26% to $50.3 million, or 12.5% of sales, compared to $68.3 million, or 16.3% of sales during the prior year quarter, and includes an $8.7 million unfavorable impact primarily from the recall reserve adjustment. Net income, which includes the unfavorable impact from the recall reserve adjustment, decreased 18% to $38.1 million, or 9.5% of sales, compared to $46.3 million, or 11.0% of sales in the prior year quarter.