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November 1-15, 2003 Edition
Barnes & Noble.com Reports Third
Quarter 2003 Results; Losses Improve
NEW YORK/10/28/03Barnes & Noble.com (Nasdaq:BNBN) ( www.bn.com) announced today that the company’s net sales for third quarter 2003 were $99.0 million, within the previous estimates of $97 million to $102 million.
The company’s third quarter gross margin improved to 24.6 percent from 24.0 percent in the third quarter of 2002 as a result of an increase in the company’s internal fulfillment rate as well as the change in the model for used and out-of-print books, which results in higher gross margins and lower reported sales.
During third quarter 2003, the company reduced its total operating expenses on both a dollar basis and as a percentage of net sales as it continued to realize greater efficiencies across its operations. Total operating expenses decreased 13.8 percent quarter over quarter and improved as a percentage of net sales to 36.9 percent in the third quarter of 2003 from 41.3 percent in the third quarter of 2002.
The company’s EBITDA loss (loss before interest, taxes, depreciation and amortization) for the third quarter improved 36.1 percent to ($6.0) million from ($9.3) million in the third quarter of 2002.(1)
The net loss for the third quarter was ($12.2) million, or ($0.08) per share, which was at the low end of the company’s forecast for an EPS loss of ($0.08) to ($0.10) per share. The third quarter 2003 results represent a 30.4 percent improvement from a net loss of ($17.5) million or ($0.11) per share for the third quarter of 2002.
“We are well-positioned for a strong holiday season,” said Marie Toulantis, chief executive officer of Barnes & Noble.com. “We have exciting merchandising and marketing programs planned for this holiday, and we remain focused on EBITDA profitability for the fourth quarter 2003 by continuing to build on the strong operational efficiencies realized throughout the year.”
Full year 2003 sales are expected to be in the range of $415 million to $435 million. Full year net loss per share remains unchanged: the full year 2003 net loss per share is expected to be between ($0.28) to ($0.32).
About Barnes & Noble.com
Barnes & Noble.com is a leading Internet-based retailer of books, music, DVD/video and online courses. Since opening its online store ( www.bn.com) in March 1997, Barnes & Noble.com has attracted more than 15.8 million customers in 230 countries. Barnes & Noble.com’s bookstore includes the largest in-stock selection of in-print book titles with access to approximately one million titles for immediate delivery, supplemented by more than 30 million listings from its nationwide network of out-of-print, rare and used book dealers. Barnes & Noble.com offers its customers fast delivery, easy and secure ordering, and rich editorial content.