Barnes & Noble and Books-A-Million reported disappointing sales for the first quarter ended May 3. Both attributed the softness to slow customer traffic. B&N CFO Joseph Lombardi said April was the weakest month, and that business has been a bit better in May. And while comp sales at B&N are expected to be down in the second quarter due to tough comparisons with last year's record-setting Harry Potter and the Deathly Hallows, CEO Steve Riggio said he believed Stephenie Meyer's next Twilight saga title, Breaking Dawn, set for August, could be the big book of the year. BAM also has high expectations for Dawn.
All bookstores have been under tremendous pricing pressure from discount retailers and e-tailers, but both B&N and BAM said they have been easing back on promotional discounts. “We've begun to reduce the amount of promotional discounting, inclusive of couponing,” Riggio said in the first-quarter conference call. Beginning in late 2006, B&N added extra discounts on some titles to club members, but Riggio said B&N believes there isn't the need there was in 2006 and 2007 to offer deeper discounts. Analysts have been concerned about the discounts because of their impact on profit margins.
First-Quarter Chain Sales
(In millions)
| 2007 | 2008 | % CHANGE | |
| Source: Reed Business Information | |||
| Barnes & Noble | |||
| Sales | $1,145.4 | $1,158.1 | 1.1% |
| Net income | (1.7) | (2.2) | NA |
| Same-store sales | NA | NA | -1.5% |
| Books-A-Million | |||
| Sales | $116.3 | $115.5 | -0.7% |
| Net income | 2.1 | 0.9 | -57.0% |
| Same-store sales | NA | NA | -3.4% |
