Barnes & Noble expects to top 1999 forecasts
NEW YORK, Jan 20 (Reuters) - Barnes & Noble Inc. ,
the largest U.S. bookseller, forecast 1999 earnings that were
above Wall Street expecations on Thursday, due to strong book
sales at its large stores and online.
The New York-based bookseller said it expects 1999 earnings
to be $1.74 a share, up 25 percent from 1998 and well above the
$1.32 a share analysts expect the company to earn, according to
tracking service First Call/Thomson Financial. It said it would
give guidance on 2000 earnings within the next 30 days.
"We are all extremely pleased with our results for the past
year, and we anticipate more good things to come," Leonard
Riggo, chairman of Barnes & Noble said. "The most important
message to emerge from the holiday season and for fiscal 1999
is that sales of books online are largely additive and together
with the promotional activities of our "super" stores are
clearly growing the book market."
Retail earnings are expected to rise to $1.38 a share in
the fourth quarter and to $1.71 for the year, up from previous
estimates for $1.33 a share for the quarter and $1.66 a share
for the year.
Its stock rose 2-1/8 to 24-3/16 on Thursday on the New York
Stock Exchange.
Barnes & Noble also said it expects earnings to rise by 16
percent this year, based on a 4-5 percent increase in
comparables sales for its superstores and the opening of 40-45
new stores.
Its investments for the year, including those in Internet
bookseller barnesandnoble.com, Chapters Inc., NuvoMedia,
iUniverse.com and Calendar Club, are expected to produce about
a $0.13 per share gain, it said. The value of its holdings in
publicly-traded investments is $858 million or $12.08 a share.
The company has seen stronger-than-expected sales from the
start of this year through Jan. 15, and expects to finish the
month and quarter ahead of plan, it said.
Barnes & Noble also said sales of electronic gift cards,
more customer orders from barnesandnoble.com, strong music,
children's and cafe sales contributed to the improved results.
Incremental sales resulting from cross-promotional efforts and
advertising programs with barnesandnoble.com, also helped.
Sales at barnesandnoble.com grew from $26 million in the
last quarter of 1998 to $82 million in the last quarter of
1999, resulting in a significantly higher percentage of
barnesandnoble.com to retail sales.
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