Barnes and Noble 1999 Annual Report Download - page 7

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1999 IN REVIEW
arnes & Noble’s strategy to provide
our customers with multi-channel access
to our unmatched selection is defining
the leading edge of retailing in both
the physical and virtual marketplaces,
and our results bear out the wisdom
of that strategy.
Last year, the nearly 1,500 stores that
comprise Barnes & Noble, Inc. turned
in a terrific performance, generating
record sales of $3.5 billion, up 16
percent from the year before. Our
superstores continued to lead the
industry, accounting for 81 percent of
our total sales, and posting comparable
store sales increases that accelerated
from five percent in 1998 to 6.1 percent
in 1999. Our 38 new stores ran ahead
of plan for the year, and the acquisition
of Babbage’s Etc. in October further
contributed to results, boosting our
earnings by $0.10 per share in 1999.
So it’s little surprise that Barnes &
Noble, Inc. posted operating profits
in all four quarters of fiscal year
1999 totaling some $232.1 million,
an increase of 25.4 percent over
1998’s result. Retail earnings per share
grew 30.3 percent to $1.72. Cash flow
was also robust as retail earnings
before interest, taxes, depreciation and
amortization (EBITDA) increased 26
percent to $344.4 million for the year,
or $4.82 per share.
Our Barnes & Noble bookstores
accounted for much of this growth
as we continued to enhance both our
top and bottom lines. The completion of
our state-of-the-art BookMaster system
spurred customer orders considerably.
Music, children’s books and café sales
were all robust. And our newly
introduced electronic gift cards pushed
gift certificate purchases up 30 percent
during the holiday season. Fiscal 1999
earnings per share from bookstores
increased 23 percent over the prior
year to $1.62 per share, as our
operating profit margin increased
from 6.2 percent to 6.6 percent,
reflecting better occupancy and a more
favorable product mix.
1999 ANNUAL REPORT
6
B
Executive Officers From left: Joseph Giamelli, Vice President & Chief Information
Officer; Michael Archbold, Vice President & Treasurer; Leonard Riggio, Chairman
& Chief Executive Officer; Thomas Tolworthy, President, Barnes & Noble Booksellers;
Darrell Meussner, Vice President & Chief Financial Officer of Retail & Distribution;
Mitchell Klipper, President, Barnes & Noble Development; Alan Kahn, Chief Operating Officer;
Mary Ellen Keating, Senior Vice President, Corporate Communications & Public Affairs.