Barnes & Noble sales continue to slide, losses cut due to NOOK cost rationalization efforts
The retail book chain Barnes & Noble today reported first quarter earnings for its fiscal year 2015, reporting a 7 percent decline in revenue, but smaller losses due to “cost rationalization efforts” related to its NOOK business. B&N will be spinning off its NOOK business to get off its books.
“We continued to improve our financial performance, while further executing on our strategic initiatives, including work on the proposed separation of the Barnes & Noble Retail and NOOK Media businesses,” said Michael P. Huseby, CEO of the company.
NOOK losses decreased by $50 million thanks to some cost adjustments, but retail sales fell 5.3 percent in the quarter with comparable store sales falling due to lower sales of NOOK products. Retail store profits increased, though, 2.1 percent in the quarter.
B&N continues to look for ways to separate out the NOOK business and promised investors that by the end of the first quarter next year (the final quarter of B&N fiscal 2015 year) it would achieve the separation.