A combination of a 7.7% drop in comparable store sales and the closing of 21 underperforming stores led to an 8.1% decline in sales, to $94.4 million, at Book-A-Million in the third quarter ended October 29. The bookstore chain also took one-time costs of $3.8 million related to the store closings as well as to the opening of 41 new BAM! stores this month. BAM! reported a loss of $4.0 million in the most recent period up from $1.7 million loss in last year’s third quarter.
One-time costs in the quarter included "dead rent," pre-store opening expenses, extra traval and more labor. During the quarter, BAM! opened two superstores and 10 traditional stores with the balance of the new stores opening in November, after the quarter closed.
Commenting on the results, Clyde Anderson, BAM! chairman and CEO, said, "Results for the quarter reflect a reduction in the comparable store sales decline that we have experienced year to date. An improved publishing lineup and good performance from our general merchandise expansion were partially offset by the effects of the Border's liquidation sales in 15 of our markets.”
BAM! president Terry Finley said the company's core book business did better in the quarter than it has this year led by The Help in fiction and a number of strong biographies and autobiographies in fiction. The children's segment had positive trends in a number of areas, Finley added. He was optimistic about prospects for the holiday season, noting strong commercial fiction titles and nonfiction books that "range from Glenn Beck to Lady Gaga." BAM! is also continuing to sell the Nook family of devices, including the Nook Tablet and Finley said early results of Nook Tablet sales are "encouraging."
For the nine-month period, sales decreased 10.1%, to $301.6 million, with comp sales down 11.1%. BAM! reported a net loss of $10.4 million, compared with net income of $2.2 million in the same period a year earlier.
