Barnes and Noble 1999 Annual Report Download - page 20

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“To describe our company as “clicks ‘n’
mortar” trivializes the profound service
promise that we presently deliver, as
well as those yet to come. What we
have created is a real-time digital book
network, capable of delivering any
book, anytime, anywhere.”
Barnes & Noble store in Sioux Falls, South Dakota.
distribution centers. With this technology, we can print books to order, one at a time, in a manner that is both time-efficient and cost-
effective. In so doing, we can provide our customers with a vastly wider range of titles, without having to invest in physical inventory.
The impending marriage of low-cost publishing technologies such as these and the Internet will democratize the book publishing
and bookselling businesses. Digital technologies will render huge libraries instantly accessible to PCs, laptops and hand-held
devices. A number of imposing copyright and commercial hurdles will have to be cleared to achieve this vision.
LOOKING AHEAD
Given the impressive — indeed record — numbers we generated
across all channels of distribution in 1999, we are both pleased
with our performance and resolute in our determination
to stay the multi-channel course.
We will continue to focus on the book purchase and
consumption preferences of our target audience: the rich-of-
mind and rich-of-pocket. While dot.com developments and
hot new technologies attract all the hype, we continue to
firmly believe that the key to our business model — now and
in the future — is selection. The two most powerful forces in
our industry’s history — superstores and the Internet — have
been principally fueled by wider and deeper choices.
Looking ahead, we anticipate retail earnings per share to grow
by 16 percent in the year 2000, based upon comparable sales
increases of four to five percent for Barnes & Noble superstores
and the opening of 40 to 45 new stores. Barnes & Noble stores
will continue to generate generous cash flow in excess of $344
million per year, and we believe that performance should only
improve over time.
Given our optimism about our future, we authorized
a $250 million stock repurchase program on November 30,
1999. As of the end of fiscal year 1999, we have repurchased
4,025,900 shares of our stock at a total cost of $87 million.
In 2000 and beyond, we will focus our energies on ensuring
that our customers get whatever title they desire, when they
want it and how they want it. Any book, anytime, anywhere.
That’s the foundation of the Barnes & Noble promise.
LEONARD RIGGIO
CHAIRMAN & CEO, BARNES & NOBLE, INC.
19