Barnes & Noble, Inc. Reports Comparable "Super" Store Sales Increase
of 6.1 Percent
NEW YORK (May 21) BUSINESS WIRE -May 21, 1998--
barnesandnoble.com to Launch New Look and Added Features
Barnes & Noble, Inc. (NYSE:BKS), the world's largest bookseller, today
announced total revenues of $666.3 million for its first quarter ended
May 2, 1998, up 12 percent from $595.7 million a year ago. Barnes &
Noble "super" store revenues increased 14 percent to $551.0 million
from $481.6 million and accounted for 83 percent of total revenues
during the first quarter compared with 81 percent during the same
period last year.
For the quarter, Barnes & Noble comparable store sales rose 6.1 percent
and comparable store sales for B. Dalton were flat.
barnesandnoble.com's revenues rose to $9.4 million, a 14 percent
increase over revenues of $8.2 million reported for its fourth quarter
of fiscal 1997.
The company's retail business reported a first quarter operating profit
of $13.7 million, up from $3.4 million during the same period last
year. Strong Barnes & Noble comparable store sales, increasing new
store sales productivity, expanding gross margins and increasing
operating leverage were the major factors contributing to the
year-over-year gain for the retail business. During its 1998 first
quarter, barnesandnoble.com reported an operating loss of ($13.6)
million.
The company's loss for the first quarter narrowed to ($3.3) million, or
a ($0.05) per share loss (based on 68.1 million shares), as compared
with the year-ago first quarter net loss of ($3.9) million, or a
($0.06) per share loss (based on 66.4 million shares). The first
quarter results reflect net earnings of $4.7 million, or $0.07 per
share for the company's retail business and barnesandnoble.com's net
loss of ($8.0) million or ($0.12) per share.
Through May 2, 1998, barnesandnoble.com had more than 500,000 customers
in 158 countries. Its affiliate network grew to over 6,500 sites; new
affiliates are being added at an average rate of 400 per week. In June,
barnesandnoble.com plans to launch an enhanced version of its Web site
including features such as one-click ordering, deeper search
capabilities, richer editorial content and an updated design.
As of May 2, 1998, inventories increased 17 percent to $856.6 million
from $731.5 million as of May 3, 1997. This increase is in line with
the company's revenue growth of 12 percent and the increase in its
distribution center standing inventory to over 600,000 different titles
available for shipping within 24 hours to both online customers and the
retail store network. Cash flows from operating activities, net of
capital expenditures, for the last twelve months rose to $7.6 million,
up from a deficit of ($8.0) million during the prior year period, which
includes the company's continuing investment in its online business.
Total debt declined three percent to $358.6 million as of May 2, 1998,
from $369.3 million last year.
As of May 2, 1998, the company operated 481 Barnes & Noble stores and
520 B. Dalton stores. During the first quarter, two Barnes & Noble
stores were opened and four were closed. B. Dalton closed eight stores
during the first quarter.
Barnes & Noble stores offer an authoritative selection of more than 175,
000 titles from more than 10,000 publishers with an emphasis on small,
independent publishers and university presses. Barnes & Noble is the
world's largest bookseller on the World Wide Web
(http://www.barnesandnoble.com), and the exclusive bookseller on
America Online's Marketplace (Keyword: barnesandnoble). The company
publishes books under the Barnes & Noble imprint for exclusive sale
through its retail stores, mail-order catalogs and World Wide Web site.
This release may contain certain forward-looking statements. Factors
that could cause actual results to differ materially from any
forward-looking statements contained in this release can be found in
the company's 1997 annual report. Any forward-looking statements
contained in this release are expressly qualified by the cautionary
statements contained in the company's 1997 annual report.
Barnes & Noble Inc. and Subsidiaries
Consolidated Statements of Operations
(thousands of dollars, except per share data)
(unaudited)
13 Weeks Ended
_________________________
May 2, May 3,
1998 1997
__________ __________
Revenues $ 666,344 $ 595,731
Cost of sales and occupancy 492,114 448,217
__________ __________
Gross profit 174,230 147,514
__________ __________
Selling and administrative expenses 149,608 122,811
Depreciation and amortization 21,923 17,747
Pre-opening expenses 2,604 3,854
__________ __________
Operating profit 95 3,102
Interest expense, net 5,750 9,648
Benefit for income taxes (2,320) (2,685)
__________ __________
Net loss $ (3,335) $ (3,861)
__________ __________
__________ __________
Net loss per common share:
Basic $ (0.05) $ (0.06)
Diluted $ (0.05) $ (0.06)
Weighted average common shares
outstanding:
Basic 68,101,000 66,441,000
Diluted 68,101,000 66,441,000
Percentage of revenues:
Revenues 100.0% 100.0%
Cost of sales and occupancy 73.9 75.2
__________ __________
Gross margin 26.1 24.8
__________ __________
Selling and administrative expenses 22.4 20.6
Depreciation and amortization 3.3 3.0
Pre-opening expenses 0.4 0.7
__________ __________
Operating margin 0.0 0.5
Interest expense, net 0.9 1.6
Benefit for income taxes (0.4) (0.5)
__________ __________
Net loss (0.5)% (0.6)%
__________ __________
__________ __________
Note: Certain reclassifications of prior year balances have been made
to conform to the 1998 presentation.
BARNES & NOBLE, INC. AND SUBSIDIARIES
Selected Segment Information
(thousands of dollars, except per share data)
(unaudited)
13 weeks 13 weeks
ended ended
May 2, May 3,
1998 1997
Barnes & Noble Retail Business
Revenues $ 656,976 595,541
Operating profit $ 13,698 3,356
Earnings (loss) per share $ 0.07 (0.06)
barnesandnoble.com
Revenues $ 9,368 190
Operating loss $ (13,603) (254)
Loss per share $ (0.12) (0.00)
Consolidated Barnes & Noble, Inc.
and Subsidiaries
Revenues $ 666,344 595,731
Operating profit $ 95 3,102
Loss per share $ (0.05) (0.06)
-0- bh/ny* jc
CONTACT: Investor: Marie Toulantis,
Executive Vice President, Finance
(212) 633-3451
or
Elizabeth Babin,
Vice President, Treasurer
(212) 633-3254
or
Media: Mary Ellen Keating,
Senior Vice President,
Corporate Communications
(212) 633-3323
KEYWORD: NEW YORK INDUSTRY KEYWORD: PUBLISHING RETAIL EARNINGS
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