Barnes & Noble, Inc. (NYSE: BKS), the world’s largest
bookseller, today reported sales and earnings for its fiscal 2011 fourth
quarter and full year ended April 30, 2011.
FISCAL 2011 RESULTS
For fiscal 2011, total sales increased 20% to a record $7 billion. Sales
growth was fueled by inclusion of a full year of sales from Barnes &
Noble College Booksellers (“College”) as well as a 50% sales increase at
The rapidly growing digital business propelled the top-line at BN.com
driven by the company’s NOOK™ eReader product line and digital content
from the NOOK Bookstore™. BN.com comparable sales growth accelerated
throughout the year, increasing 78% for the fourth quarter and 65% for
the full year as compared to the same periods in fiscal 2010. BN.com
sales were $217 million for the quarter and $858 million for the full
Barnes & Noble store sales were $943 million for the quarter and $4.4
billion for the full year. Comparable store sales decreased 2.9% for the
quarter. Fourth quarter comparable store sales were temporarily
negatively impacted by the liquidation of over 200 Borders bookstores
during the quarter. As those stores have closed, the company is
realizing incremental sales in those markets. For the full year,
comparable store sales increased 0.7% led by the sale of digital
products, which more than offset the decline in trade books.
College sales increased 3.5% for the quarter to $211 million and were
$1.8 billion for the full year. Comparable store sales increased 2.8%
for the quarter and decreased 0.8% for the year.
For the fourth quarter, the company reported a consolidated net loss of
$59 million, or $1.04 per share.
For fiscal 2011, the company reported earnings before interest, taxes,
depreciation and amortization (EBITDA) of $163 million. The consolidated
full-year net loss was $74 million, or $1.31 per share.
The company has previously announced that it received a proposal from
Liberty Media to acquire the company and that Liberty’s proposal is
under review by the Special Committee of the company’s Board of
Directors which is charged with reviewing strategic alternatives for the
company. In light of the pendency of that proposal and its ongoing
process, the Special Committee has determined that the company will not
at this time issue sales or earnings guidance regarding the outlook for
A conference call with Barnes & Noble, Inc.’s senior management will be
webcast beginning at 10:00 A.M. ET on Tuesday, June 21, 2011, and is
accessible at www.barnesandnobleinc.com/webcasts.
Barnes & Noble, Inc. will report first quarter earnings results on or
about August 30, 2011.
ABOUT BARNES & NOBLE, INC.
Barnes & Noble, Inc. (NYSE:BKS), the world's largest bookseller and a
Fortune 500 company, operates 705 bookstores in 50 states. Barnes &
Noble College Booksellers, LLC, a wholly-owned subsidiary of Barnes &
Noble, also operates 636 college bookstores serving over 4.6 million
students and faculty members at colleges and universities across the
United States. Barnes & Noble conducts its online business through
Barnes & Noble.com (www.bn.com),
one of the Web's largest e-commerce sites, which also features more than
two million titles in its NOOK Bookstore(TM) (www.bn.com/ebooks).
Through Barnes & Noble’s NOOK(TM) eReading product offering, customers
can buy and read eBooks on the widest range of platforms, including NOOK
eBook Readers, devices from partner companies, and hundreds of the most
popular mobile and computing devices using free NOOK software.
General information on Barnes & Noble, Inc. can be obtained via the
Internet by visiting the company's corporate website: www.barnesandnobleinc.com.
The All-New NOOK(TM), The Simple Touch Reader(TM), NOOK(TM), NOOK 1st
Edition(TM), NOOK Wi-Fi 1st Edition(TM), NOOK Color(TM), Reader’s
Tablet(TM), Fast Page(TM), NOOK Books(TM), NOOK Bookstore(TM), NOOK
Newsstand(TM), PubIt!(TM), NOOK Kids(TM), Read In Store(TM), More In
Store(TM), NOOK Friends(TM), LendMe(R), NOOK Library(TM), NOOK
Boutiques(TM), The Barnes & Noble Promise(TM), NOOK Books en
español(TM), NOOK Study(TM), Free Friday(TM), Lifetime Library(TM) and
Read What You Love. Anywhere You Like(TM) are trademarks of Barnes &
Noble, Inc. Other trademarks referenced in this release are the property
of their respective owners.
Follow Barnes & Noble on Twitter (www.bn.com/twitter),
and YouTube (http://www.youtube.com/user/bnstudio).
This press release contains certain forward-looking statements (within
the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended) and
information relating to Barnes & Noble that are based on the beliefs of
the management of Barnes & Noble as well as assumptions made by and
information currently available to the management of Barnes & Noble.
When used in this communication, the words "anticipate," "believe,"
"estimate," "expect," "intend," "plan," "will" and similar expressions,
as they relate to Barnes & Noble or the management of Barnes & Noble,
identify forward-looking statements. Such statements reflect the current
views of Barnes & Noble with respect to future events, the outcome of
which is subject to certain risks, including, among others, the general
economic environment and consumer spending patterns, decreased consumer
demand for Barnes & Noble's products, low growth or declining sales and
net income due to various factors, possible disruptions in Barnes &
Noble's computer systems, telephone systems or supply chain (including
supplier risks resulting from our reliance on suppliers outside the
United States, including suppliers in China), possible risks associated
with data privacy, information security and intellectual property,
possible work stoppages or increases in labor costs, possible increases
in shipping rates or interruptions in shipping service, effects of
competition, potential effects of a bankruptcy filing by one of Barnes &
Noble's largest competitors and actions taken by that competitor during
bankruptcy, including store closures or store closures at a rate
different than anticipated, sales of inventory at discounted prices and
elimination of liabilities, higher-than-anticipated store closing or
relocation costs, higher interest rates, the performance of Barnes &
Noble's online, digital and other initiatives, effects of government
regulation on the Company’s business, including its online and digital
businesses (including with respect to the agency pricing model for
digital content distribution), the performance and successful
integration of acquired businesses, the success of Barnes & Noble's
strategic investments, unanticipated increases in merchandise, component
or occupancy costs, unanticipated adverse litigation results or effects,
including with respect to intellectual property, product and component
shortages, the outcome of Barnes & Noble's evaluation of strategic
alternatives, including a possible sale of Barnes & Noble, as announced
on August 3, 2010 or the outcome of the proposal from Liberty Media
announced on May 19, 2011, and other factors which may be outside of
Barnes & Noble's control, including those factors discussed in detail in
Item 1A, "Risk Factors," in Barnes & Noble's Quarterly Report on Form
10-Q, filed with the SEC on January 29, 2011, and in Barnes & Noble's
other filings made hereafter from time to time with the SEC. Should one
or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results or outcomes may
vary materially from those described as anticipated, believed,
estimated, expected, intended or planned. Subsequent written and oral
forward-looking statements attributable to Barnes & Noble or persons
acting on its behalf are expressly qualified in their entirety by the
cautionary statements in this paragraph. Barnes & Noble undertakes no
obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise after
the date of this communication.