Hurricanes Cost Books-A-Million
by Jim Milliot -- Publishers Weekly, 9/27/2004
The three hurricanes that struck the U.S. this summer have taken their toll on Books-A-Million. The company reported last week that because of store closings and damage from the storms, it is lowering its earnings estimate for the third quarter and for the full year.
BAM said 35 stores were closed—about 17% of its total outlets—for two to seven days because of the hurricanes; three outlets suffered significant property damage. Although BAM is insured for damage and business losses, it will need to pay an unspecified deductible. The company lowered earnings-per-share estimates for the third quarter by two cents, to a net loss of six cents to eight cents, and cut full-year earnings per share to 57 cents to 59 cents.
The losses from the hurricanes, however, are not expected to affect BAM's store plans for the second half of the year. The retailer is set to open five to seven stores over the next few months, while remodelling 10 to 15. It may also close up to three outlets.
