New York, NY (May 17, 2005)—Barnes & Noble, Inc. (NYSE: BKS), the world’s largest bookseller, today reported sales and earnings for the first quarter ended April 30, 2005.
Net earnings from continuing operations increased 37% to $9.9 million or $0.13 per share, versus guidance of $0.11 to $0.13 per share. Consolidated net earnings decreased $0.03 per share versus last year due to the $0.06 per share earned from the company’s investment in GameStop in the first quarter a year ago, prior to the tax-free spin-off of GameStop in the fourth quarter of 2004.
Comparable store sales at Barnes & Noble were 2.2% for the quarter, in line with company guidance for a low single digit increase.
Total first quarter sales were $1,097.2 million, increasing 4% from $1,058.2 million a year ago. Barnes & Noble store sales were $959.2 million, increasing 5% over the prior year. Barnes & Noble.com sales were $91.4 million, decreasing (0.6%) from the prior year. B. Dalton sales were $31.5 million, a decrease of (21%) over the prior year, due primarily to store closings and a (0.3%) comparable store sales decline.
As previously announced, the company completed a $250 million share repurchase program and had a new $200 million share repurchase program authorized during the first quarter. The company repurchased approximately $75 million of shares in the first quarter under both programs.
“We are pleased with the company’s sales and earnings performance,” said Steve Riggio, chief executive officer of Barnes & Noble, Inc. “The overall tone of business was as expected, and we anticipate accelerated sales growth in the second quarter with the arrival of the sixth Harry Potter book on July 16th.”
As of April 30, 2005, the company operated 671 Barnes & Noble stores and 150 B. Dalton stores. During the first quarter, seven Barnes & Noble stores were opened and two were closed. B. Dalton closed four stores during the quarter.
For the second quarter, the company expects comparable store sales at Barnes & Noble stores to be in the mid-single digits. For the full year, the company continues to expect comparable store sales to increase approximately 3%. Sales at Barnes & Noble.com are expected to increase at similar levels.
Barnes & Noble, Inc.’s second quarter earnings per share is expected to be in a range of $0.19 to $0.21, and for the full year the company continues to expect earnings per share to be in a range of $1.94 to $1.98.
A conference call with Barnes & Noble, Inc.’s senior management will be webcast beginning at 11:00 A.M. ET on Tuesday, May 17, 2005, and is accessible at www.barnesandnobleinc.com/webcasts. The call will also be archived at www.fulldisclosure.com for one year.
Barnes & Noble, Inc. will report second quarter earnings on or about August 18, 2005.
Here you can download financial tables related to the sales and earnings for the first quarter ended April 30, 2005.
Consolidated Statements of Operations (11KB)
Consolidated Balance Sheets (14KB)
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