First Installation of Wireless RFID System in U.S. Library Deployed
Barnes & Noble reported that sales for 2005 increased 5 percent to $5.1 billion. The company reported that store sales increased 6 percent to $4.4 billion. Sales at Barnes & Noble.com increased 5 percent to $439.7 million. Sales at the company’s B. Dalton stores were $141.6 million for the year, a 20-percent decrease due to store closings.
By comparison, the company’s increase in bookstore sales slowed slightly from the prior year, but topped the increase that the company saw in 2003. In 2004, Barnes & Noble store sales were $4.1 billion—an increase of 7 percent over the prior year. And in 2003, the company reported bookstore sales of $3.8 billion—an increase of 4.5 percent over the prior year.
“By every single important financial metric, 2005 was a great year for the company. Strong expense controls and expanding gross margins drove record earnings,” says Steve Riggio, Barnes & Noble CEO.
Borders reported that sales at its domestic superstores increased by 4.7 percent in 2005, ending the year at $2.71 billion. Strong fourth-quarter book sales led results with an increase of 6 percent for the period, according to the company. Music continued to decline in the fourth quarter, with an 11-percent decrease compared to the same period last year.
“In the fourth quarter, we began to see the benefits of investments made in Borders stores, and we learned where capital is best deployed to drive future returns,” says Borders CEO Greg Josefowicz. “This year, we’ll continue to invest, much as we did in 2005, with a focus on our key book, café and gifts and stationery categories, and once again, all of our growth will emerge in the fourth quarter.”
In 2004, a year when the company opened 19 new superstores, its domestic sales had increased 4.8 percent over fiscal 2003, ending the year at $2.59 billion.