Books-A-Million Earnings Drop in Third Quarter
Books-A-Million's earnings report for the third quarter ending Oct. 30 isn't very good, and can't be spun in a very positive light. Not when net sales decreased 5.5% to $104.8 million, from $110.9 million a year ago, the company's net loss for the quarter climbed to $1.7 million, or 11 cents a share (from $1.6 million at this time last year) and comparable store sales dropped 5.8% from the same period 12 months before.
Looking at Books-A-Million's fortunes for the first three quarters combined, net sales are down 2.8% to $341.8 million, comparable store sales declined 4.2%, and net income is actually up a little bit -- $2.2 million, or 14 cents per diluted share, compared with net income of $1.9 million, or 12 cents per diluted share, for the year-earlier period.
Cost-Conscious Consumers Buying Fewer Hardcovers
Chairman, President and CEO Clyde Anderson didn't mince words, singling out the comparable store sales in particular as being "disappointing" in a statement released Thursday afternoon. He added the company "faced a tough comparison to last year's bestseller lineup" and cited another big factor: "a cost conscious-consumer buying fewer hardcover books."
There were, however, "continued positive trends in bargain books and gifts" and looking ahead, BAMM is particularly excited about "our new toy, gift and electronics departments, our entry into the video game business, our expanded offering of DVDs and the introduction of the NOOK range of e-readers, including NOOKcolor."
Books-A-Million, with this deal, stands to reap tidy earnings and profits, while also presumably helping B&N's bottom line as well. As a result, it seems likely that the no. 3 retailer will end fiscal year 2010 on a more positive note, and bring further good cheer into 2011.