By MICHAEL GARLAND-BROWNBERRY-LEIGH, AP Business WriterThe New York TimesPublishers of Penguin’s flagship magazine Penguin have taken a hit, with the average bookseller losing nearly 30% of their value in the past year, the Times reported Thursday.
In the U.S., bookselling volumes fell 3% in April and May from a year earlier, with average booksellers losing roughly $2.5 billion, according to the Times.
Penguin has seen its stock fall nearly 20% since last year, when it closed at $4.80.
The newspaper reported that book sales fell 10% in the first quarter of 2019 from a month earlier.
The loss is especially concerning because Penguin’s business has been expanding rapidly, with it reporting a $1.3 billion profit last year.
Sales at its flagship flagship Penguin imprint were up 15% in March from a record year earlier.
In a statement, the company said that its core business remained strong and that “there is room for more growth.”
“We believe we have a great product, and are focused on building upon the strong foundations we’ve built in recent years,” the statement said.
“We believe in delivering compelling products to the best customers.”
The news comes on the heels of a disappointing earnings report for Penguin last month.
Its net income declined 17% to $9.4 million.
In addition, the newspaper reported Thursday that its total revenue fell 5.3% in 2019, as it reported that revenue for the U-K-M division of the company fell 8.5%.