New York, NY (March 20, 2008)—Barnes & Noble, Inc. (NYSE: BKS), the world’s largest bookseller, today reported sales and earnings for the fourth quarter and the full year ended February 2, 2008. In addition, the company announced that its Board of Directors has authorized an increase to its quarterly cash dividend from $0.15 to $0.25 per share, commencing with the dividend to be paid in June 2008.
2007 RESULTS
As previously reported, Barnes & Noble store sales were $1,511 million for the quarter and $4,648 million for the full year. Excluding the impact of the extra week during fiscal 2006, Barnes & Noble store sales increased 2.8% for the quarter and 4.3% for the full year as compared to the same periods in fiscal 2006. Comparable store sales decreased 0.5% for the quarter and increased 1.8% for the year.
Barnes & Noble.com sales were $177 million for the quarter and $477 million for the full year. Excluding the impact of the extra week during fiscal 2006, Barnes & Noble.com comparable sales increased 13.1% for the quarter and 13.4% for the full year as compared to the same periods in fiscal 2006.
Consolidated sales were $1,846 million for the quarter and $5,411 million for the full year.
As previously announced, the company received two non-operating benefits in January 2008, comprised of property insurance and litigation settlements that totaled $6.3 million on an after tax basis ($0.10 per share for the fourth quarter and $0.09 per share for the full year).
Net earnings were $115.0 million, or $1.79 per share for the fourth quarter, and $135.8 million, or $2.03 per share, for the full year, in-line with guidance updated on March 3, 2008.
As previously announced, the company repurchased 6.9 million shares in 2007 for $248.3 million under its share repurchase plan. In the first quarter of 2008, the company purchased an additional 1.9 million shares for $52.7 million. Approximately $150 million remains under the existing share repurchase authorization.
2008 GUIDANCE
The company expects first quarter comparable store sales at Barnes & Noble stores to be slightly negative, and as previously announced, full-year comparable store sales are expected to be slightly positive.
Barnes & Noble, Inc.’s first quarter earnings are expected to range from $0.05 to $0.10 per share. As previously announced, Barnes & Noble, Inc.’s full-year earnings per share are expected to range from $1.70 to $1.90, approximately flat with 2007 on an operating basis. Non-operating items in 2007 results include the two settlements, previously noted, as well as the $8 million tax benefit recorded in the company’s second quarter.
The share count used in the computation of earnings per share is based on a diluted weighted average share count of 63.4 million shares for the first quarter, and a diluted weighted average share count of 64.2 million shares for the full year.
As of February 2, 2008, the company operated 713 Barnes & Noble stores and 85 B. Dalton stores. During the fourth quarter, nine Barnes & Noble stores were opened and five were closed. Seven B. Dalton stores were closed during the quarter.
A conference call with Barnes & Noble, Inc.’s senior management will be webcast beginning at 10:00 A.M. ET on Thursday, March 20, 2008, and is accessible at www.barnesandnobleinc.com/webcasts. The call will also be archived at www.earnings.com for one year.
Barnes & Noble, Inc. will report first quarter earnings on or about May 22, 2008.
FINANCIAL TABLES
Download financial tables related to the sales and earnings for the fourth quarter and the full year ended February 2, 2008:
Consolidated Statements of Operations (14 KB)
Consolidated Balance Sheets (13 KB)
To read the tables, you will need Adobe Reader, available at no charge from Adobe. Click here to download Adobe Reader, and follow the step-by-step instructions.
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