Revenues at Books-A-Million increased 7.1% in the fiscal year ended January 30, 1999, to $347.9 million. Net income, however, fell 35.7% to $4.5 million. Sales in the fourth quarter rose 3.1% to $116.5 million, and net income inched ahead to $6.5 million from $6.4 million.

BAM suffered throughout the year from weak comparable-store sales comparisons, with same-store sales down 2.8% in fiscal '99. A slowdown in the number of stores added to the chain also contributed to the lackluster results; BAM had a net gain of 10 outlets (to 175) in the year, compared to gains of 14 and 22 stores in fiscal 1998 and 1997, respectively.

In a prepared statement, BAM president Clyde Anderson said, "Although we are not yet satisfied with our comparable-store sales, the fourth quarter saw marked improvement over the trend of the first three quarters." Same-store sales fell 0.9% in the final period.

Anderson indicated that in fiscal 2000, the company will continue to expand its e-commerce initiative, Booksamillion.com, as well as adding stores in "appropriate" markets and increasing the company's wholesale business. The company had no comment on how Booksamillion.com performed in the year.

Anderson also announced that the company has launched J muggs.com, through which the retailer will sell specialty coffees, cookies, tea and gift items. The new site will be cross-promoted with Booksamillion.com. BAM opened its first J Muggs Newsstand late last year (News, Nov. 30, 1998). In addition to selling food and drinks, the store features more than 3000 magazines and newspapers.

`Feed' Agreement

Books-A-Million has also reached an agreement to become the exclusive online retailer on Feed (www.feedmag.com), an online political and cultural magazine. However, Feed founder and publisher Steven Johnson told PW that unlike the usual Web retail deals, Feed will receive only a flat payment, and no transaction fee for each sale.

Johnson told PW that the deal was structured to protect Feed's editorial integrity. He added, "It's a service to our readers and an interesting advertising opportunity for our sponsors." BAM will create all the content on a Feed subsite called the Book Nook, which will allow readers to buy any title mentioned on Feed. Feed previously used Amazon.com, although Johnson noted that Feed did not accept payments based on title sales.