Consolidated sales for bookseller Barnes & Noble, Inc. (New York), totaled $5.3 billion for its fiscal year ended February 3, 2007. Excluding the impact of an extra week in the period, store sales for Barnes & Noble increased a modest 2% for the year compared to the previous year. Sales for the company's website totaled $433 million, down 1.1% from last year.
In its fiscal year-end announcement, executives said that the bookseller will close its Internet distribution center in Memphis, Tenn. All Internet orders will be fulfilled from the company's newly constructed DC in Monroe, N.J., and its facility in Reno, Nev. As a result of shutting down the Memphis facility, the company will incur charges of $7.1 million related to accelerated depreciation, severance, and remaining rental obligations.
"We achieved our earnings guidance for the fourth quarter and the full year despite sales being at the low end of our sales plan," said Steve Riggio, CEO of Barnes & Noble, Inc. "The negative impact of the disappointing sales was offset by an increase in gross margin, attributable to fewer bestseller markdowns, lower inventory shrink and improvements throughout our supply chain."
Barnes & Noble operates 793 bookstores in 50 states.
