February 22, 1999
Barnes & Noble, Inc. Reports 1998 Record Retail Sales of $3.0 Billion
Barnes & Noble Store Comparable Sales Up 5.0 Percent barnesandnoble.com
Sales of $70.2 Million Up 381 Percent
New York, NY (February 22, 1999) - Barnes & Noble, Inc. (NYSE: BKS), the
world's largest bookseller, today reported that retail sales for the fiscal
year ended January 30, 1999 were $3.0 billion, an increase of 8.0 percent
over the same period last year. Barnes & Noble store sales rose 12.0
percent to $2.5 billion and contributed 84 percent of total retail sales in
1998.
Retail sales for the fourth quarter of 1998 were $1,029 million, up 7.2
percent from $960 million last year. Barnes & Noble store sales for the
fourth quarter were $853 million, up 11.8 percent from $763 million in
1997. Comparable sales for the Barnes & Noble stores rose 5.0 percent for
the year and increased 4.7 percent for the fourth quarter. Comparable store
sales for B. Dalton stores declined (1.4) percent for the year and (2.6)
percent for the fourth quarter.
"Overall, we were very pleased with our fourth quarter results", said
Leonard Riggio, chairman and chief executive officer of Barnes & Noble,
Inc. "Although the season started off slowly in November - a trend which
has been repeated over the last few years - a late surge in shopping
resulted in a 5.7 percent comparable sales increase for the 5-week holiday
season ending January 2nd. This surge allowed us to complete the season
with another strong year-over-year gain. We were also pleased with our
ability to maintain sales growth, while at the same time, encouraging
customers to purchase books online. By combining the sales of our retail
stores with those of barnesandnoble.com, it becomes increasingly clear that
the internet business is strongly accretive and that our customer base and
market share are growing as a result of our entry into this exciting
arena."
barnesandnoble.com sales for the year were $70.2 million, a 381 percent
increase over 1997. The full-year sales results exceeded the company's
projections of $60-65 million, partially as a result of an extremely
successful holiday advertising campaign. Fourth quarter sales were $31.1
million, 3.8 times the 1997 sales for the same period. According to Media
Metrix, the barnesandnoble.com web site is now the fourth largest shopping
site, among the top 30 largest sites on the Internet and was ranked as one
of 1998's fastest-growing web sites.
Subject to the annual audit, the company expects to report 1998
consolidated earnings of $1.29 per share, comprised of the following:
Retail business earnings of $1.35 per share, an increase of 27.4% over
1997; barnesandnoble.com loss of ($.59 ) per share (reflecting the
inclusion of 100% of barnesandnoble.com results in the consolidated
earnings for the first three quarters of 1998 and 50% for the fourth
quarter) and a gain of $ .53 which resulted from the Bertelsmann
investment. 1998 E.P.S. is calculated assuming weighted average diluted
shares outstanding of approximately 71.7 million. Complete results for
fiscal year ending January 30, 1999 are expected to be released on or about
March 11th.
The company projects that retail earnings for the year ended January 29,
2000 will grow by 14 percent to 17 percent (from $1.54 to $1.58 per share,
assuming approximately 73.5 million shares), based upon an increase in
comparable store sales for Barnes & Noble of 4.5 percent to 5.5 percent and
comparable store sales of flat to (1.0) percent for B. Dalton. Included in
this estimate is an increase of approximately $15 million in expenses in
connection with the installation of new store systems which will allow
store customers to access the expanded title selection now enjoyed by
online shoppers. Approximately 50 Barnes & Noble stores will be opened and
about 50 B. Dalton stores will be closed.
Consolidated guidance for the company, including the results of
barnesandnoble.com, will be discussed within the next thirty days; guidance
including the acquisition of Ingram Book Company will be issued after the
transaction has been approved by the Federal Trade Commission.
Barnes & Noble, Inc. operates 520 Barnes & Noble bookstores and 489 B.
Dalton bookstores. Barnes & Noble stores stock an authoritative selection
of book titles and provide access to more than one million titles from
Barnes & Noble's state-of-the-art distribution center. They offer books
from more than 50,000 publisher imprints 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 (Keyword: bn). The company also publishes books under the Barnes &
Noble imprint for exclusive sale through its retail stores, mail-order
catalogs, and Web site.
barnesandnoble.com has the world's largest selection of book titles -- more
than eight million. In less than two years, it has become the fourth
largest e-commerce site and among the top 30 overall sites on the Web,
according to Media Metrix. The company maintains the largest standing
inventory of any online bookseller with more than 750,000 titles ready for
immediate delivery. The site's database features more than six and a half
million out-of-print and rare books, as well as the largest online
selection of bargain books discounted up to 90 percent. A powerful search
engine, one-click ordering, and extensive book reviews and expert
commentary provide a fast, convenient and informed shopping experience.
Author chats and readers create a growing and personal literary community.
barnesandnoble.com is the exclusive bookseller to America Online (AOL)'s
more than 16 million subscribers (Keyword: bn). The company's affiliate
network pays the highest commissions with the best linking and best
reporting tools, including daily updated sales information, and is the
leader in business-to-business e-commerce with its unique Business
Solutions program.
General financial information on Barnes & Noble, Inc. can be obtained via
the Internet by visiting the company's investor relations Web site:
shareholder.com.
This release may contain certain forward-looking statements regarding
expectations of the company. These statements are based on currently
available information and represent the beliefs of the management of the
company. The future events which are the subject of such statements are
subject to certain risks, including those set forth in the company's annual
and quarterly reports on file with the Securities and Exchange Commission.
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