The book retail chain has a bleak story for Wall Street this morning. It reported a net loss of $6.1M for the three months that ended in January, down from a $52M profit a year ago, on revenues of $2.2B, -8.8%. Revenues missed analyst expectations for $2.4B. And with a dividend on preferred shares thrown in, the company generated a net loss of 18 cents a share — a contrast to the 54 cent profit analysts anticipated. The NOOK results continued to disappoint. It generated $316M in sales in the quarter, down 25.9% from a year ago, with a cash flow (EBITDA) loss of $190.4M, worse than last year’s $82.8M loss. The results include $21M for returns, and $15M in promotional allowances. As a result, Barnes & Noble took a $59M writedown on its NOOK inventory. It says that it is “calibrating its business model and has implemented a cost reduction program that the company projects will significantly reduce NOOK’s expenses.” CEO William Lynch says that the company remains committed to the tablet and e-reader business. In the main retail bookstore business, sales decreased 10.3% to $1.5B although EBITDA increased 7.3% to $212M. Not including NOOK sales, revenues at stores open at least a year were down 2.2%. This week B&N founder Leonard Riggio said he may offer to buy the stores.
NOOK Woes Contribute To Barnes & Noble Fiscal Q3 Loss
What's Hot on Deadline
Bravo Renews & Expands 'Southern Charm', Sets More 'Shahs Of Sunset' & 'Million Dollar Listing New York'
Latest Business News
- Tribune Media Extends Food Network Partnership With Scripps Networks
- U.S. Senate Sets December Date For Time Warner-AT&T Merger Hearing
- Hounds At His Heels, Brad Grey Fights For Paramount’s Future –Part 1
- SAG-AFTRA Teams With ATA To Pay Actors’ Unclaimed Residuals
- Andrew Rannells And Christian Borle Are Tender, If Unlikely, Lovers In ‘Falsettos’ Revival – Review
- NBCUniversal & Comcast Slapped With Age Discrimination Suit By Ex-E! SVP