Birmingham, Ala. Books-A-Million Inc. reported that its net income dropped by more than 57% in the first quarter of 2008.
Net income for the company's first quarter dropped to $900,000 compared to $2.1 million in its first quarter last year.
The first-quarter results included a one-time charge of $406,000 for severance related to corporate staff reductions, said a news release. A company representative declined to comment on how many people were affected at its corporate headquarters.
Books-A-Million's net sales dropped nearly 1% in the first quarter, from $116.3 million in the first quarter of last year to $115.5 million last quarter. Meanwhile, same-store sales fell by more than 3%.
"Our first-quarter results were affected by a very challenging economic environment," said Sandra B. Cochran, president and CEO. "We are focused on executing the fundamentals of managing inventory, controlling costs and maintaining margins while adjusting our merchandising plan to meet the demands of a cost-conscious consumer."