MAIN NEWS HEADLINES
December 4 – December 11, 2008 Edition
Another B. Dalton
As BN Cuts Costs
FORT COLLINS, CO/Authorlink News/12/4/08–Another of Barnes & Noble’s B. Dalton Book Stores will be closed January 17, 2009, this time at the Foothills Mall in Fort Collins. Assistant manager Jalid Mencia told www.coloradoan.com that “Basically we wanted sales to go Barnes and Noble because we’re part of the same company.”
Sales were down 20% at the Foothills store, and its lease was up for renewal. The Foothills location is about the 12th B. Dalton to close since the beginning of 2008. Ten B. Dalton stores were closed as of August 2008, and two more, including the Foothills store, have been shut this quarter.
In November, Barnes & Noble reported a third-quarter loss of $18.4 million compared to a profit of $4.4 million a year earlier. Same store sales fell 7.4% for the quarter. Same -store sales fell 7.4% in the quarter. Management said it is reducing its expenses for the rest of this year and in 2009.
Sales for the third quarter were $1.1 billion, a 4.4% decrease compared to the prior year. Barnes & Noble store sales decreased 4.4% to $971 million, with comparable store sales decreasing 7.4% for the quarter. Barnes & Noble.com sales were $109 million for the quarter, a 2.0% comparable sales increase compared to the prior year.
In it’s third quarter report, Barnes & Noble said, “While it is difficult to forecast sales with any certainty in the current retail environment, the company is reducing its full year sales and earnings forecasts based on the negative sales trends to date. ”
For the fourth quarter, the company expects comparable store sales at Barnes & Noble stores to decline 6% to 9%. Fourth quarter earnings per share is expected to be in a range of $1.40 to $1.70. For the full year, the company now expects comparable store sales at Barnes & Noble stores to decline 5% to 6%. Full year earnings per share is expected to be in a range of $1.30 to $1.60, compared to previous guidance of $1.70 to $1.90.
As of November 1, 2008, the company operated 728 Barnes & Noble stores and 71 B. Dalton stores. During the third quarter, nine Barnes & Noble stores were opened and four were closed. Two B. Dalton stores were closed during the quarter.