Barnes & Noble to spin off NOOK business, reports year-end earnings
Final quarter finds retail revenue stable, with College revenue up strongly – NOOK business in shambles
The book retailer Barnes & Noble (B&N) today reported its year-end fiscal 2014 earnings, and also announced that it would separate out its NOOK business from its retail business.
B&N reported an overall decrease in revenue in all its segments, but without the NOOK business, the results did not look too dire. Retail revenue was down 6 percent for the year, but the final quarter saw retail revenue actually up slightly. But the NOOK business has proved a drag on the company, and so out it goes.
“Our fiscal 2014 results and solid financial position at year-end reflect the positive impact of those actions. We believe we are now in a better position to begin in earnest those steps necessary to accomplish a separation of NOOK Media and Barnes & Noble Retail,” said CEO Michael P. Huseby.
“We have determined that these businesses will have the best chance of optimizing shareholder value if they are capitalized and operated separately. We fully expect that our Retail and NOOK Media businesses will continue to have long-term, successful business relationships with each other after separation.”
NOOK revenue was down 22.3 percent in the final quarter, and down over 35 percent for the year. NOOK was responsible for adding $218 million in losses for the full year.