BKS » Topics » Cost of Sales and Occupancy

This excerpt taken from the BKS 10-Q filed Jun 11, 2009.

Cost of Sales and Occupancy

During the 13 weeks ended May 2, 2009, cost of sales and occupancy decreased $34.4 million, or 4.3%, to $773.5 million from $807.9 million during the 13 weeks ended May 3, 2008. As a percentage of sales, cost of sales and occupancy increased slightly to 70.0% from 69.9% the same period one year ago. This increase was primarily attributable to the deleveraging of fixed occupancy costs on the negative comparable store sales, partially offset by lower distribution expenses as well as merchandising and supply chain initiatives.

 

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Table of Contents
These excerpts taken from the BKS 10-K filed Apr 1, 2009.

Cost of Sales and Occupancy

The Company’s cost of sales and occupancy includes costs such as merchandise costs, distribution center costs (including payroll, freight, supplies, depreciation and other operating expenses), rental expense, common area maintenance and real estate taxes, partially offset by landlord tenant allowances amortized over the life of the lease.

 

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Cost of sales and occupancy decreased $139.2 million, or 3.8%, to $3,540.6 million in fiscal 2008 from $3,679.8 million in fiscal 2007. As a percentage of sales, cost of sales and occupancy decreased to 69.1% in fiscal 2008 from 69.6% in fiscal 2007. This decrease was primarily attributable to reduced promotional markdowns, better product mix and increased volume through the Company’s distribution centers, which more than offset the deleveraging of fixed occupancy costs on the negative comparable store sales.

Cost of Sales and Occupancy

The Company’s cost of sales and occupancy includes costs such as merchandise costs, distribution center costs (including payroll, freight, supplies, depreciation and other operating expenses), rental expense, common area maintenance and real estate taxes, partially offset by landlord tenant allowances amortized over the life of the lease.

Cost of sales and occupancy increased $145.7 million, or 4.1%, to $3,679.8 million in fiscal 2007 from $3,534.1 million in fiscal 2006. As a percentage of sales, cost of sales and occupancy increased to 69.6% in fiscal 2007 from 68.8% in fiscal 2006. This increase was primarily attributable to the impact of the new discount structure in the Company’s Member program, which went into effect in October 2006, and the deep discount on J.K. Rowling’s Harry Potter and the Deathly Hallows, offset by a favorable variance of $10.3 million related to the annual physical count of inventory.

Cost of Sales and Occupancy

STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%">The Company’s cost of sales and occupancy includes costs such as merchandise costs, distribution center costs (including payroll, freight, supplies,
depreciation and other operating expenses), rental expense, common area maintenance and real estate taxes, partially offset by landlord tenant allowances amortized over the life of the lease.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">Cost of sales and occupancy increased $145.7 million, or 4.1%, to $3,679.8 million in fiscal 2007 from $3,534.1 million in fiscal 2006. As a percentage
of sales, cost of sales and occupancy increased to 69.6% in fiscal 2007 from 68.8% in fiscal 2006. This increase was primarily attributable to the impact of the new discount structure in the Company’s Member program, which went into effect in
October 2006, and the deep discount on J.K. Rowling’s Harry Potter and the Deathly Hallows, offset by a favorable variance of $10.3 million related to the annual physical count of inventory.

STYLE="margin-top:18px;margin-bottom:0px">Selling and Administrative Expenses

Selling and
administrative expenses increased $47.8 million, or 4.1%, to $1,225.8 million in fiscal 2007 from $1,178.0 million in fiscal 2006. As a percentage of sales, selling and administrative expenses increased to 23.2% in fiscal 2007 from 22.9% in fiscal
2006. This increase was primarily due to legal costs offset by a gain in insurance proceeds from the Hurricane Katrina settlement.

This excerpt taken from the BKS 10-Q filed Dec 11, 2008.

Cost of Sales and Occupancy

During the 39 weeks ended November 1, 2008, cost of sales and occupancy decreased $67.3 million, or 2.7%, to $2,447.1 million from $2,514.4 million during the 39 weeks ended November 3, 2007. As a percentage of sales, cost of sales and occupancy decreased to 69.8% from 70.5% from the same period one year ago. This decrease was primarily attributable to the reduced promotional markdowns and increased volume through the Company’s distribution centers that more than offset the deleveraging of fixed occupancy costs on the negative comparable store sales.

This excerpt taken from the BKS 10-Q filed Sep 11, 2008.

Cost of Sales and Occupancy

During the 26 weeks ended August 2, 2008, cost of sales and occupancy decreased $33.9 million, or 2.0%, to $1.660 billion from $1.694 billion during the 26 weeks ended August 4, 2007. As a percentage of sales, cost of sales and occupancy decreased to 69.7% from 70.9% from the same period one year ago. This decrease was primarily attributable to the deep discount on J. K. Rowling’s Harry Potter and the Deathly Hallows during the same period last fiscal year, as well as a physical inventory benefit of $11.0 million this fiscal year as results were more favorable than previously estimated and accrued. In addition, reduced promotional markdowns and increased volume through the Company’s distribution centers more than offset the deleveraging of fixed occupancy costs on the negative comparable store sales.

This excerpt taken from the BKS 10-Q filed Jun 12, 2008.

Cost of Sales and Occupancy

During the 13 weeks ended May 3, 2008, cost of sales and occupancy decreased $0.8 million, or 0.1%, to $810.5 million from $811.4 million during the 13 weeks ended May 5, 2007. As a percentage of sales, cost of sales and occupancy decreased to 70.0% from 70.8% from the same period one year ago. This decrease was primarily attributable to merchandising and supply chain initiatives, increased volume through the Company’s distribution centers which products contain higher margins, favorable product mix including lower sales of low margin music and lower unit sales of highly discounted bestsellers, as well as distribution center closing costs of $1.7 million in the first quarter of the 52 weeks ended February 2, 2008 (fiscal 2007).

These excerpts taken from the BKS 10-K filed Apr 2, 2008.

Cost of Sales and Occupancy

The Company’s cost of sales and occupancy includes costs such as merchandise costs, distribution center costs (including payroll, supplies, depreciation and other operating expenses), rental expense, common area maintenance, merchant association dues and lease-required advertising, partially offset by landlord tenant allowances amortized over the life of the lease.

Cost of sales and occupancy increased $87.1 million, or 2.5%, to $3.623 billion in fiscal 2006 from $3.536 billion in fiscal 2005. As a percentage of sales, cost of sales and occupancy decreased to 68.9% in fiscal 2006 from 69.3% in fiscal 2005. This decrease was primarily attributable to favorable inventory shortage results and the deep discounted selling price on J. K. Rowling’s Harry Potter and the Half-Blood Prince in fiscal 2005, offset by the enhancement in the Company’s Member program in fiscal 2006 whereby adult hardcover discounts increased by an additional 10%.

 

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Cost of Sales and Occupancy

FACE="Times New Roman" SIZE="2">The Company’s cost of sales and occupancy includes costs such as merchandise costs, distribution center costs (including payroll, supplies, depreciation and other operating expenses), rental expense, common area
maintenance, merchant association dues and lease-required advertising, partially offset by landlord tenant allowances amortized over the life of the lease.

FACE="Times New Roman" SIZE="2">Cost of sales and occupancy increased $87.1 million, or 2.5%, to $3.623 billion in fiscal 2006 from $3.536 billion in fiscal 2005. As a percentage of sales, cost of sales and occupancy decreased to 68.9% in fiscal
2006 from 69.3% in fiscal 2005. This decrease was primarily attributable to favorable inventory shortage results and the deep discounted selling price on J. K. Rowling’s Harry Potter and the Half-Blood Prince in fiscal 2005, offset by
the enhancement in the Company’s Member program in fiscal 2006 whereby adult hardcover discounts increased by an additional 10%.

 


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This excerpt taken from the BKS 10-Q filed Dec 12, 2007.

Cost of Sales and Occupancy

During the 39 weeks ended November 3, 2007, cost of sales and occupancy increased $150.9 million, or 6.4%, to $2,514.4 million from $2,363.6 million during the 39 weeks ended October 28, 2006. As a percentage of sales, cost of sales and occupancy increased to 70.5% from 69.9% from the same period one year ago. This increase was primarily attributable to the impact of the rollout of the Company’s new Membership discount structure, which went into effect in October 2006, the deep discount on J.K. Rowling’s Harry Potter and the Deathly Hallows, offset by a physical inventory benefit of $10.3 million.

This excerpt taken from the BKS 10-Q filed Sep 13, 2007.

Cost of Sales and Occupancy

During the 26 weeks ended August 4, 2007, cost of sales and occupancy increased $111.2 million, or 7.0%, to $1,693.8 million from $1,582.6 million during the 26 weeks ended July 29, 2006. As a percentage of sales, cost of sales and occupancy increased to 70.9% from 69.7% from the same period one year ago. This increase was primarily attributable to the impact of the rollout of the Company’s new Membership discount structure which went into effect in October 2006 and the deep discount on J. K. Rowling’s Harry Potter and the Deathly Hallows.

This excerpt taken from the BKS 10-Q filed Jun 14, 2007.

Cost of Sales and Occupancy

During the 13 weeks ended May 5, 2007, cost of sales and occupancy increased $35.4 million, or 4.6%, to $811.4 million from $776.0 million during the 13 weeks ended April 29, 2006. As a percentage of sales, cost of sales and occupancy increased to 70.8% from 69.6% from the same period one year ago. This increase was primarily attributable to the impact of the rollout of the Company’s new Membership discount structure which went into effect in October 2006 and, to a lesser extent, the costs related to the closing of the Company’s Internet distribution center.

This excerpt taken from the BKS 10-K filed Apr 4, 2007.

Cost of Sales and Occupancy

The Company’s cost of sales and occupancy includes costs such as merchandise costs, distribution center costs (including payroll, supplies, depreciation and other operating expenses), rental expense, common area maintenance, merchant association dues and lease-required advertising, partially offset by landlord tenant allowances amortized over the life of the lease.

Cost of sales and occupancy increased $146.9 million, or 4.3%, to $3.536 billion in fiscal 2005 from $3.389 billion in fiscal 2004. As a percentage of sales, cost of sales and occupancy decreased to 69.3% in fiscal 2005 from 69.5% in fiscal 2004. This decrease was due to less purchases from book wholesalers at higher costs than direct purchases from publishers, higher purchases through the Company’s distribution network, reduced sales of lower margin music and increased sales volume leveraging fixed occupancy costs in the Barnes & Noble stores, offset by the deep discounted selling price on J. K. Rowling’s Harry Potter and the Half-Blood Prince.

This excerpt taken from the BKS 10-Q filed Apr 4, 2007.

Cost of Sales and Occupancy

During the 39 weeks ended October 28, 2006, cost of sales and occupancy increased $4.4 million, or 0.2%, to $2,363.6 million from $2,359.1 million during the 39 weeks ended October 29, 2005. As a percentage of sales, cost of sales and occupancy decreased to 69.9% from 70.4% from the same period one year ago. This decrease was primarily attributable to lower markdowns due to lower sales of heavily discounted bestsellers, including J. K. Rowling’s Harry Potter and the Half-Blood Prince, and reduced sales of lower margin music.

This excerpt taken from the BKS 10-Q filed Aug 31, 2006.

Cost of Sales and Occupancy

During the 26 weeks ended July 29, 2006, cost of sales and occupancy decreased $14.7 million, or 0.9%, to $1,582.6 million from $1,597.3 million during the 26 weeks ended July 30, 2005. As a percentage of sales, cost of sales and occupancy decreased to 69.7% from 70.4% from the same period one year ago. This decrease was primarily attributable to lower markdowns due to lower sales of heavily discounted bestsellers, including J. K. Rowling’s Harry Potter and the Half-Blood Prince, reduced purchases from wholesalers and a shift in the merchandise mix.

This excerpt taken from the BKS 10-Q filed Jun 2, 2006.

Cost of Sales and Occupancy

During the 13 weeks ended April 29, 2006, cost of sales and occupancy increased $6.2 million, or 0.8%, to $776.0 million from $769.8 million during the 13 weeks ended April 30, 2005. As a percentage of sales, cost of sales and occupancy decreased to 69.6% from 70.2% from the same period one year ago. This decrease was primarily attributable to lower markdowns due to lower sales of heavily discounted bestsellers, reduced purchases from wholesalers and a shift in the merchandise mix.

This excerpt taken from the BKS 10-K filed Apr 5, 2006.

Cost of Sales and Occupancy

The Company’s cost of sales and occupancy includes costs such as merchandise costs, distribution center costs (including payroll, supplies, depreciation and other operating expenses), rental expense, common area maintenance, merchant association dues and lease-required advertising, partially offset by landlord tenant allowances amortized over the life of the lease.

Cost of sales and occupancy increased $326.2 million, or 10.7%, to $3.387 billion in fiscal 2004 from $3.060 billion in fiscal 2003, primarily due to the inclusion of Barnes & Noble.com’s cost of sales

 

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and occupancy for the full period in fiscal 2004 compared with a partial period in fiscal 2003. As a percentage of sales, cost of sales and occupancy decreased to 69.5% in fiscal 2004 from 70.0% in fiscal 2003. This decrease was primarily attributable to the reduction in bestseller markdowns and leverage on fixed occupancy costs.

This excerpt taken from the BKS 10-Q filed Dec 7, 2005.

Cost of Sales and Occupancy

 

During the 39 weeks ended October 29, 2005, cost of sales and occupancy increased $97.9 million, or 4.3%, to $2,357.6 million from $2,259.7 million during the 39 weeks ended October 30, 2004. As a percentage of sales, cost of sales and occupancy decreased to 70.4% from 70.6% during the same period one year ago. This decrease was due to increased sales volume leveraging fixed occupancy costs in the Barnes & Noble stores and a reduction in bestseller markdowns, offset by the deep discount on J. K. Rowling’s Harry Potter and the Half-Blood Prince book.

 

This excerpt taken from the BKS 10-Q filed Sep 8, 2005.

Cost of Sales and Occupancy

 

During the 26 weeks ended July 30, 2005, cost of sales and occupancy increased $70.1 million, or 4.6%, to $1,596.2 million from $1,526.1 million during the 26 weeks ended July 31, 2004. As a percentage of sales, cost of sales and occupancy decreased to 70.4% from 70.7% during the same period one year ago. This decrease was due to increased sales volume leveraging fixed occupancy costs in the Barnes & Noble stores and a reduction in bestseller markdowns, offset by the deep discount on J. K. Rowling’s Harry Potter and the Half-Blood Prince book.

 

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