Barnes & Noble losses increase following spin-off of Education
The US bookseller Barnes & Noble today reported 2016 Q1 earnings, its first since the spin-off of Barnes & Noble Education, which also reported earnings. Both companies reported losses, though B&N Education did report an increase in revenue.
“The Company successfully executed its major strategic initiatives during the first quarter, including the spin-off of its College business, the conversion of the Series J preferred shares into common shares and the initiation of a quarterly dividend,” said Barnes & Noble CFO Allen Lindstrom, in the earnings announcement. “As we look to the second quarter and beyond, we are focused on opportunities to increase comparable store sales and reduce expenses. The Company plans to further reduce NOOK expenses through synergies with the Retail business and we expect to see those benefits during the balance of the fiscal year.”
First quarter revenues decreased 1.5% to $1.2 billion, while the first quarter net loss was $34.9 million, compared to a loss of $28.4 million in the prior year.
NOOK sales continued to dive, falling 22.4 percent to $54 million for the quarter. NOOK now drives $17 million worth of losses for B&N.
Barnes & Noble Education numbers were a bit better. Sales revenue grew to $239.0 million, an increase $13.3 million or 5.9 percent. But the company reported a net loss of $26.9 million in the quarter.
“By completing the separation from Barnes & Noble Inc., we believe we are well positioned to take advantage of future growth opportunities and enhance our services for our current and future customers,” said Max J. Roberts, Chief Executive Officer, Barnes & Noble Education, Inc.
Here is the table for Barnes & Noble: