Similar to its larger brethren, Books-A-Million reported better than expected holiday sales for the period ended January 5, 2002, although the gains were not as robust as those for Barnes & Noble and Borders. Comparable-store sales in the chain's core book business rose 4.4% in the period, but lower same-store sales in the music and collectible categories resulted in a 0.5% increase for the entire company. BAM chairman Clyde Anderson attributed the decline in music sales to the company's decision to reduce its music sections in favor of adding more books. Total sales for the period increased 7.7%, to $110.2 million.
Anderson said that because of less after-holiday discounting in the gifts and cards department, the company is projecting that comparable-store sales for the entire fourth quarter will be down by about 1%, better than expected. Because holiday sales beat projections, BAM now projects earnings to be higher than originally forecast. Sales during the holidays were led by sales of Harry Potter and Lord of the Rings books, while the biographies John Adams and Theodore Rex also did well. John Grisham's Skipping Christmas was the top seller at the chain over the holidays.
Anderson said he "feels good about next year," noting that the chain is excited about the new Grisham book due out in the first quarter. The company plans to open eight to 10 new superstores in the year. Net income for fiscal 2003 is projected to increase between 15% and 20%.
