Q2 story not so good at Books-A-Million
BIRMINGHAM, Ala. — Reading into the Books-A-Million results, its easy to see how the liquidation at Borders took a toll on the book retailer's second quarter. Books-A-Million reported that net sales for its second quarter decreased 11.4% to $106.4 million from net sales of $120 million in the year-earlier period. Comparable-store sales for the second quarter declined 12.9% compared with the 13-week period in the prior year. Net loss for the second quarter was $2.9 million, or 18 cents per diluted share, compared with net income of $1.9 million, or 12 cents per diluted share, in the year-earlier period.
Commenting on the results, Clyde Anderson, chairman, president and CEO, said, “Results for the quarter reflect a continuation of the trends that have been affecting our business since the beginning of the year. A soft publishing lineup, the effect of e-book migration and the impact of Borders' liquidation all contributed to the decline in comparable-store sales. In this environment we have been focused on further developing the growth categories in our stores in preparation for the second half of the year while our balance sheet remains strong.”
For the 26-week period ended July 30, net sales decreased 11.2% to $210.4 million from net sales of $237 million in the year-earlier period. Comparable-store sales declined 13.1% compared with the same period in the prior year. For the 26-week period ended July 30, the company reported net loss of $6.4 million, or $0.41 per diluted share, compared with net income of $3.9 million, or 25 cents per diluted share, in the year-earlier period.
Late last month, Borders rejected Books-A-Million's offer to buy 30 Borders store.