It does not appear Amazon is putting Barnes and Nobel out of business either.
"Media Contact:
Mary Ellen Keating
Senior Vice President
Corporate Communications
Barnes & Noble, Inc.
(212) 633-3323
Investor Contact:
Maureen O'Connell
Chief Financial Officer
Barnes & Noble, Inc.
(212) 633-3338
Barnes & Noble Comparable Sales Up 4.5% in Q4
GameStop IPO Completed Raises $250.0 Million for Barnes & Noble
46% Consolidated EPS Growth Expected in 2002
New York, NY (February 21, 2002)--Barnes & Noble, Inc. (NYSE:BKS), the nation's largest bookseller, today reported sales for the fourth quarter and for the full year ended February 2, 2002:
- Barnes & Noble store sales were $1.1 billion for the quarter, an increase of 4.7 percent over the prior year. For the full year ended February 2, 2002, sales were $3.4 billion, an increase of 6.0 percent. On a comparable basis, sales increased 4.5 percent for the fourth quarter and 2.7 percent for the year.
- B. Dalton sales, which comprise approximately 8.0 percent of total bookstore sales, were $112.1 million for the quarter, a decrease of (17.6) percent, and $310.3 million for the year, a decrease of (16.6) percent, due primarily to the closing of 35 stores. Comparable sales decreased (3.4) percent for the fourth quarter and (3.7) percent for the year.
Based on the greater-than-anticipated bookstore fourth-quarter sales, the company expects to earn $1.70 per share for the retail segment (which includes GameStop) in fiscal 2001 (prior to a $4.5 million charge for the settlement of a lawsuit). On a consolidated basis, including the company's share of pro-forma losses at Barnes & Noble.com and other investments, earnings are expected to be $1.28 per share (prior to a $4.5 million charge for the settlement of a lawsuit), exceeding consensus estimates.
Due to GameStop's quiet period, Barnes & Noble can not break out guidance for the company's share of GameStop earnings.
GameStop IPO
On February 19, 2002, the company successfully completed an initial public offering for its GameStop subsidiary, raising $250.0 million in cash for Barnes & Noble, Inc. and $52.4 million in net proceeds for GameStop. On a fully diluted basis, Barnes & Noble has retained an approximate 60.0 percent interest in GameStop.
GameStop will separately announce 2001 results and 2002 guidance after its quiet period, which ends on March 9, 2002.
Guidance for Fiscal 2002
For the fiscal year ending February 1, 2003, the company currently expects comparable bookstore sales to increase (decrease) as follows:
First Six Months Second Six Months
Barnes & Noble Stores 2.0 to 3.0 percent 4.0 to 5.0 percent
B. Dalton (3.0) to (4.0) percent (4.0) to (5.0) percent
Based on these sales levels, the company expects to earn $2.11 per share for the retail segment (which includes GameStop) in fiscal 2002, an increase of 24.1 percent.
Due to GameStop's quiet period, Barnes & Noble can not break out guidance for the company's share of GameStop earnings.
On a consolidated basis, including the pro-forma losses at Barnes & Noble.com and the results of other investments, earnings are expected to increase by 46.1 percent to $1.87 per share. The projected increase is being driven by the strong earnings growth in the retail segment and the declining losses at Barnes & Noble.com, which separately has issued guidance that projects Barnes & Noble, Inc.'s share of its pro-forma losses to decline from $0.35 per share in fiscal 2001 (prior to impairment and special charges of $0.32 per share) to $0.23 per share in 2002.
"We are obviously pleased with recent developments, especially our retail sales performance in light of the soft economy," said Leonard Riggio, chairman of Barnes & Noble, Inc. "Our balance sheet has been bolstered significantly with the proceeds from the GameStop IPO, and our cash flow from operations continues to be strong. We hope to continue to outperform the retail sector during the course of the next several years."
A conference call with Barnes & Noble, Inc.'s management will be simulcast on the Web at (www.companyboardroom.com) beginning at 11 A.M. EST on Thursday, February 21, 2002, and is accessible at (http://www.barnesandnobleinc.com/financials), where it will be archived until March 21, 2002.
ABOUT BARNES & NOBLE, INC.
Barnes & Noble, Inc. (NYSE: BKS) operates 582 Barnes & Noble and 328 B. Dalton bookstores, and GameStop (NYSE: GME), which is the nation's largest operator of video game and entertainment software stores with 1,011 stores. Barnes & Noble stores stock an authoritative selection of book titles and provide access to more than one million titles. They offer books from more than 50,000 publisher imprints with an emphasis on small, independent publishers and university presses. Barnes & Noble is one of the world's largest booksellers on the World Wide Web (http://www.bn.com), and the premiere bookseller on America Online's (Keyword: bn) proprietary network. Barnes & Noble.com (Nasdaq: BNBN) has the largest standing inventory of any online bookseller. Barnes & Noble also publishes books under its own imprint for exclusive sale through its retail stores and Web site.
General financial information on Barnes & Noble, Inc. can be obtained via the Internet by visiting the company's corporate Web site: barnesandnobleinc.com.
SAFE HARBOR
This press release contains "forward-looking statements." Barnes & Noble is including this statement for the express purpose of availing itself of the protections of the safe harbor provided by the Private Securities Litigation Reform Act of 1995 with respect to all such forward-looking statements. These forward-looking statements are based on currently available information and represent the beliefs of the management of the company. These statements are subject to risks and uncertainties that could cause actual results to differ materially. These risks include, but are not limited to, general economic and market conditions, decreased consumer demand for the company's products, possible disruptions in the company's computer or telephone systems, possible work stoppages or increases in labor costs, possible increases in shipping rates or interruptions in shipping service, effects of competition, possible disruptions or delays in the opening of new stores or the inability to obtain suitable sites for new stores, higher than anticipated store closing or relocation costs, higher interest rates, the performance of the company's online and other initiatives, the successful integration of acquired businesses, unanticipated increases in merchandise or occupancy costs, unanticipated adverse litigation results or effects, product shortages, and other factors which may be outside of the company's control. Please refer to the company's annual, quarterly and periodic reports on file with the SEC for a more detailed discussion of these and other risks that could cause results to differ materially.
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