Book-A-Million reported lower profits and earnings for both the fourth quarter and full fiscal 2010 for the year ended January 29. The results, said CEO Clyde Anderson in a prepared statement, “illustrate a dynamic and rapidly changing retail environment for booksellers.” Anderson said BAM was pleased with the results of its partnership with Barnes & Noble to sell the Nook range of e-readers beginning in the fourth quarter as well as the performance of BAM’s expanded toy and game business.
For the year, sales fell 2.7%, to $495 million, and net income dropped 35.5%, to $8.9 million. Same store sales fell 4.9% in the year. In a brief conference call, BAM executives said consumers remained cost conscious during the year and holidays which resulted in good gains in bargain and value books.The core book business, however, faced tough comparisons as the popularity of e-readers and digital sales channels increased. Biography, entertainment and humor were among the categories where new books sold well.
During the year, BAM opened one superstore and nine smaller format stores, plus one used bookstore (2nd & Charles) and converted another superstore to a 2nd & Charles. BAM closed five stores during 2010. Executives had little to say about plans for 2011, noting that they expected little change in the tough retail environment and that the early publishing schedule looked “modest.”
