Fourth quarter sales at Borders were $1.1 billion overall, down 12.9 percent from a year ago. The superstores comprised $816.1 million, down 15.3 percent on a same-store sales basis (and book comps were down 11.7 percent), and 14.8 percent overall. Waldenbooks accounted for $195.6 million in sales, down a more modest 4.7 percent on a same-store basis, and down 14.3 percent overall. International sales added $43.2 million, and Borders.com did $26.4 million in business. The company had net writedowns totaling $34.9 million in the quarter. Goodwill impairment was the largest charge, followed by store closures and severance costs. Adjusted income […]
Booksellers
Delisting Possible as Borders Prepares to Unveil Strategy Next Week
With Borders set to declare fourth-quarter results next week, expectations are grim: more multi-million dollar losses, store closures, payroll slashings and, with shares currently trading at 64 cents per share, potential de-listing from the NYSE. Shareholders will hear more about the company’s strategy, including plans for a reverse stock split to satisfy NYSE conditions, next Wednesday when CEO Ron Marshall hosts a conference call with analysts and investors. One turnaround expert tells the Detroit Free Press that Borders seems to be one of buying time and hoping economic recovery is just around the corner. “They are figuring their brand name […]
BAM Sales Off Over 5 Percent
Same-store sales at Books-a-Million fell 5.3 percent in their fiscal fourth quarter (and 2.5 percent overall) at $164 million, as net income fell 4.2 percent to $11.4 million. Sales were off 4.1 percent for the full year, at $513.3 million, for a same-store sales decline of 7.2 percent. Net income suffered more, falling almost 35 percent to $10.8 million. Newly-appointed ceo Clyde Anderson says “The fiscal year closed with an improvement in the negative sales trend we experienced in the third quarter. We remain focused on maintaining discipline in expense control, inventory management and the maintenance of a strong balance […]
BN Reduces Inventory by 11 Percent
In their earnings conference call with investors, Barnes & Noble noted that “inventories declined $155 million or 11 percent compared to last year.” They say they were able to “improve inventory turns to the highest levels in our history” and indicated “our in stock percentage of being in stock on key titles and back list did not suffer at all” as a result. Other supply chain improvements “resulted in reduced purchases from book wholesalers which of course carry lower markups.” A good portion of the inventory reductions were in music, and the company indicated DVDs and music combined now comprise […]
BN Sees Continued Sales Drop After 7.3 Percent Decline in Q4
Barnes & Noble reported fourth quarter sales for the period ending January 31 of $1.439 billion, down 7.3 percent on a same-store basis and down 4.8 percent overall, as BN.com sales of $157 million were down 10.4 percent for the quarter. Net earnings for the quarter were $81.2 million, or $1.46, in line with the previously-reduced guidance. CEO Steve Riggio says in the release, “As we look to 2009, we expect the challenging environment to continue. Sales forecasts have been planned accordingly and expenses have been cut. The strength of our balance sheet remains a top priority. And, while we […]
Analyst Hopeful on B&N Stock
In advance of tomorrow’s fiscal fourth quarter earnings report, the consensus poll of analysts expects Barnes & Noble to earn $1.48 per share for the quarter on revenue of $1.74 billion. Those earnings would be in line with the company’s reduced guidance in early January, forecasting a range of $1.30 to $1.60 a share, though the sales forecast could be high given the retailer’s weak holiday report. (BN has been weak in the two prior fourth quarters, with sales of $1.69 billion a year ago.) As reported in this piece, William Armstrong with CL King and Associates has a “buy” […]