Barnes & Noble Q4, 2008 Down19 Mar, 2009 By: Billy Gil
Barnes & Noble posted a net profit of $81.2 million its fourth quarter ended Jan. 31, down nearly 30% year-over-year, from $115 million; and $75.9 million for the fiscal year, down from $135.8 million the year before.
The No. 1 U.S. bookseller said total sales dropped 6% to $1.63 billion in the quarter. Comparable-store sales dropped 7.3% for the quarter and 5.3% for the year.
“While 2008 proved to be the most challenging year that the company and the industry have ever experienced, we are proud of our financial results in light of the macro retail environment,” said Steve Riggio, CEO of Barnes & Noble.
Company CFO Joseph Lombardi said DVD and music sales for the retailer were down significantly. The two combined accounted for about 8% of the book retailer’s business during the quarter.
“I mean it’s down double digits, significant double digits, and it continues to decline. We’re managing the business as it comes down,” he said in a conference call with investors. “We’re managing it intelligently. We think we’re managing inventory well and we’re taking sales where we can get them.”