Apple Inc (AAPL)

[fmikehugo]

13:58 AAPL Apple: Fortune Apple Blog discusses this morning's Bernstein Research report (177.14 -2.91) -Update-

Fortune Apple Blog reports in fiscal year 2007, Tony Sacconaghi of Bernstein Research estimates, Apple stores generated an average of nearly $4,500 in sales per square foot — a figure far higher than any other consumer electronics or luxury retailer. That's nearly five times the productivity of Best Buy, for example, one of the most efficient consumer retail outlets, and nearly 12 times that of Saks. Only Tiffany & Company comes close, with sales of $2,750 per square foot... Among the report's other findings: Mac sales per store grew 26% y-o-y in fiscal 2007.

Apple's brick and mortar stores sold an average of 8,000 Macs in 2007, or a "stunning" 21.4 per day. Apple Stores boosted the co's total revenue by at least $1.35 bln (5.65%) during the year, with gross margins of 42% (versus 34% for Apple overall). Despite the high gross margins, the stores have somewhat lower profitability than the co overall because of high operating expenses. The average Apple Store has 40 full-time-equivalent employees, double the number four years earlier. All told, Sacconaghi estimates that the retail segment's operating margin was 16.9% for the year, compared with 18.4% for Apple overall.