New York, NY (February 23, 2010)—Barnes & Noble, Inc. (NYSE: BKS), the world’s largest bookseller, today reported sales and earnings for its fiscal 2010 third quarter ended January 30, 2010. The company also announced that its Board of Directors has declared a quarterly cash dividend of $0.25 per share payable on March 31, 2010, to stockholders of record on March 10, 2010.
Total sales for the third quarter were $2.2 billion, a 33% increase compared to the prior year. Barnes & Noble store sales decreased 4.7% to $1.4 billion, with comparable store sales decreasing 5.5% for the quarter. Total sales in the 2010 quarter include Barnes & Noble College Bookstore (“College”) sales of $566 million. For the 2010 quarter, College’s comparable store sales decreased 1.3% but were down only 0.2% for the five week “back-to-school rush” period ending February 6, 2010.
Barnes & Noble.com sales increased 32% to $210 million for the quarter, as compared to the prior year. Most notably, Barnes & Noble.com’s sales accelerated throughout the quarter, increasing 67% year-over-year for the month of January.
“nook(TM) began shipping only in the middle of the third quarter, and, as evident in our sales, we are thrilled with how customers have embraced our product and our digital eBook platform,” said Steve Riggio, chief executive officer of Barnes & Noble, Inc. “In addition to the accelerating online sales trends, nook(TM) sales have been strong at our bookstores since the product became available earlier this month.”
For the third quarter, the company reported earnings before interest, taxes, depreciation and amortization (EBITDA) of $204 million. The company’s third quarter earnings incorporate the first full quarter of College’s financial results since acquisition. College contributed $49 million to EBITDA during the quarter. Consolidated net earnings were $80.2 million, or $1.38 per share, at the high end of the guidance range of $1.20 to $1.40 per share.
The company ended the third quarter with $40 million in cash and no debt outstanding under its revolving credit facility.
Bestselling titles during the quarter included John Grisham’s Ford Country, Greg Mortenson’s Stones into School, Elizabeth Gilbert’s Committed, Andre Agassi’s Open and Nicholas Sparks’ Last Song.
GUIDANCE
For the fiscal 2010 fourth quarter ending May 1, 2010, comparable store sales at Barnes & Noble stores are expected to decline 2% to 4%, and College’s comparable store sales are expected to be in a range of (1%) to 1%. The company expects full-year comparable store sales at Barnes & Noble stores to decline 3% to 5% and continues to expect College’s comparable store sales to be in a range of (1%) to 1% from the acquisition date to the end of fiscal 2010.
The fourth quarter loss per share is expected to be in a range of $0.85 to $1.15. Consistent with the update provided on January 7, 2010, fiscal year 2010 earnings per share is expected to be in a range of $0.23 to $0.53.
As of January 30, 2010, the company operated 719 Barnes & Noble stores and 639 Barnes & Noble College Bookstores. During the third quarter, three Barnes & Noble stores were opened and nine were closed; three College stores were opened. Additionally, the company closed 46 B. Dalton bookstores.
CONFERENCE CALL
A conference call with Barnes & Noble, Inc.’s senior management will be webcast beginning at 10:00 A.M. ET on Tuesday, February 23, 2010, and is accessible at www.barnesandnobleinc.com/webcasts.
Barnes & Noble, Inc. will report full year earnings results for the 2010 fiscal year ending May 1, 2010, on or about June 24, 2010.
FINANCIAL TABLES
Download financial tables related to the sales and earnings for the third quarter ended January 30, 2010:
Consolidated Statements of Operations (14 KB)
Consolidated Balance Sheets (14 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.
|
