Barnes & Noble Reports Fiscal 2011 Q1 Results no comments
Barnes & Noble today reported sales and earnings for its fiscal 2011 first quarter which ended July 31, 2010.
Total sales for Q1 ($1.4 billion) were up 21 percent compared to last year. B&N’s embracing of digital reading has really been paying off – Barnes & Noble.com sales ($145 million) surged 42 percent over the prior year, although the online sales still only make up a little more than 10 percent of B&N’s total sales at this point. Still, just as ebook sales in general make up only a small percentage of current overall book sales, with growth rates like that ebooks (and B&N’s digital sales) are starting to add up to much more than just a hill of beans pretty quickly. Well, actually, maybe the bean counters like to see hills of beans.
“The company made significant strides executing its digital strategy during the first quarter, and all our key metrics on the digital business are well ahead of plan,” said William Lynch, chief executive officer of Barnes & Noble, Inc. “The company launched NOOK Wi-Fi, the most full-featured, low-cost dedicated eBook Reader on the market, the launch of NOOKstudy™, an innovative study platform that enables easy eTextbook and digital content management for college students, and the introduction of NOOK for Android™, free software that brings our eReading experience to millions using Android smartphones and the first of our eReading apps to feature Barnes & Noble’s new NOOK-centric branding. In addition, we are increasing the competitive advantage provided by our bookstores through the launch of full-service NOOK Boutiques, where customers can experience NOOK and speak with knowledgeable booksellers who provide device demonstrations and ongoing product support. Our digital strategy has clearly resonated with our customers as our Members – our best customers – with NOOK devices have increased their spending by approximately 20%. NOOK has also greatly expanded the Barnes & Noble customer base, with 25% of all NOOK customers new to BN.com.”
Meanwhile, in-store sales ($1 billion) were down two percent (.9 percent for comparable stores). The B&N College Bookstores did better than expected and saw a comparable store sales ($226 million) increase of 2.9 percent.
Unfortunately, unless my math is off, it looks as though B&N’s digital sales success is not making up for the decrease in store sales, at least during the time period in question.
Barnes & Noble also announced today that Jamie Lannone has been named President of Barnes & Noble Digital Products and John Foley has joined the company as President of Barnes & Noble eCommerce.
Lannone joined the company a year ago and has been serving as Executive Vice President. Foley is coming from IAC, where he has been for 13 years – most recently serving as the CEO of The Pronto Network. Foley is the founder of both Pronto.com and Proust.com.
In his new role, Iannone will be responsible for all NOOK™ eReading devices, software, accessories and retail integration and experiences; eBooks and digital content; and third-party partnerships. Foley will manage the BN.com online retail business including books, children’s books, toys and games, music, movies, home and gift items, electronics and marketplace, as well as merchandising, online and search marketing. The two seasoned executives will report to William Lynch, CEO of Barnes & Noble, Inc. supported by leadership teams and talented employees.
