Barnes & Noble to Close DC Dedicated to Internet Order Fulfillment in Memphis

Consolidated fiscal year sales for bookseller Barnes & Noble, Inc. (New York), totaled $5.3 billion for the period ended February 3, 2007. Excluding the impact of an extra week in its 2006 fiscal year, Barnes & Noble store sales increased 2% compared to the same period in last year. Sales for the company's website totaled $433 million for the full year, down 1.1%.

In the company's fiscal year-end announcement, executives said that the company 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, remaining rental obligations and other costs.

"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.

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