PW: BAM Sales Rise, but Margins Lag

Despite a 16.1% sales increase to $404 million and an 8% gain in comparable-store sales, Books-A-Million chairman Clyde Anderson was not entirely satisfied with the overall performance of the company in the fiscal year ended January, 29, 2000. Although net income rose a hefty 31.1% in the year to $5.9 million, BAM's profit margin was only 1.5% for the year. The profit picture was particularly disappointing in the fourth quarter, when a 19% gain in sales translated into only a 0.9% increase in earnings.

While Anderson said he was "gratified" by the results, he added that "we must continue to improve profits through a continued focus on operational excellence and creative merchandising." According to Anderson, BAM plans to "leverage our investment in new technologies to empower our associates in providing the highest possible level of service to our customers--in our stores and on the Web." Executives at BAM were unavailable at press time last week to elaborate on the chain's plans.