Sales fell 11.4% at Books-A-Million for the second quarter ended July 31, to $106. 4 million, and the company had a net loss of $2.9 million compared to earnings of $1.9 million in the second quarter of 2010. Comp store sales fell 12.9%.
After a weak first quarter, company executives said they expected another difficult period in the second quarter and in a prepared statement CEO Clyde Anderson said, “Results for the quarter reflect a continuation of the trends that have been affecting our business since the beginning of the year.” According to Anderson, those trends include a soft publishing lineup, the effect of e-book migration and the impact of Border's liquidation sales. BAM has opened five new stores since Borders announced it was liquidating (four in former Borders’ locations), and Anderson said BAM is focused on developing the growth categories in our stores in preparation for the second half of the year.
For the first six months of 2011 sales decreased 11.2%, to $210.4 million, and comparable store sales declined 13.1% compared. The retailer reported net loss of $6.4 million in the period, compared with net income of $3.9 million a year ago. Higher costs associated with remodelling new stores were offset by lower salaries at headquarters and in the stores, the company said.
In a conference call, BAM's Terry Finley said the company expected the business environment for its core book business to remain "challenging" for the current quarter. BAM has had success with new products, such as toys, games, puzzles and licensed product and has seen a "solid" response to its electronic and electronic accessories items (BAM sells the Nook line), and there are plans to expand in the electronics area, Finley said. The company is also positioned "to take advantage of opportunities in the fast changing market."
