BAM Third Quarter: Sales, Net Loss Inch Up

In the third quarter ended October 31, revenue at Books-A-Million rose 0.4%, to $101.6 million, and the net loss was $7.1 million, compared to $6.9 million in the same period a year earlier. Sales at stores open at least a year rose 1.6%.

For the year to date, revenue fell 0.6%, to $311.3 million and the net loss was $18.2 million, compared with a net loss of $15.5 million in the same period a year earlier. Sales at stores open at least a year rose 0.1%.

In an earnings call after the announcement, CEO and president Terrance G. Finley commented: "Our comparable sales performance for the period improved modestly over the prior quarter and was again driven by--largely by--an ongoing growth in our general merchandise or gift area and by improved performance in our core book department."

Comparisons were made difficult because of the success last year of "several media-driven properties like Frozen and teen movies--for John Green's Fault in Our Stars and Veronica Roth's Divergent series."

But that was offset somewhat by "the growing coloring book trend and advantageous author event schedule and a stronger publishing lineup."

The general merchandise department, cafes and book departments all had "favorable comparisons," while media, magazine and electronics departments continued to "contract."

BAM had "nice results" from expanded offering of gifts and book-related accessories. Because of the popularity of adult coloring books, the sale of markers and colored pencils rose significantly.

General and license adult strategy games, metal marvel puzzles and LEGO Brickstructures were "our key items in the games and puzzle category, while growth in the toy category continue to be fueled by sales of adult collective merchandise including Funko's Pop! Figures."

Finley noted that BAM hosted "several successful author events with Dr. Ben Carson during the period, which droves nice sales increases in our face point category. As has been the case for several quarters we continue to see a solid performance from our kids' book department as well as graphic novel category where sales of Manga series continue to grow appreciably."

The "stronger publishing lineup" included The Rogue Lawyer by John Grisham, See Me by Nike Sparks, Killing Reagan by Bill O'Reilly and Thomas Jefferson and the Tripoli Pirates by Brian Kilmeade.

Finley said the company has been preparing for the holiday season by "fine tuning our assortments and merchandise presentations" and noted the importance of "several book-related movie and television adaptations that will help drive customer interest in sales activity. And, of course, we're looking forward to an exceptional movie event December 18, with the release of Star Wars: Episode VII."

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