Barnes & Noble stock climbs as struggling retailer announces new stock repurchase plan
The stock repurchase program of up to $50 million comes after the company reported that sales had fallen 8 percent in its most recent quarter
The stock of book retailer Barnes & Noble climbed 10 percent today after the company announced a stock repurchase program of up to $50 million of its common shares. B&N stock (BKS) was up just under a dollar to $9.50 a share as of mid-morning.
The announcement comes two weeks after the company had reported earnings. In its third quarter, B&N sales were down 8 percent compared to the prior year, and while net income was also down, it remained above last year after 39 weeks thanks to discontinued operations.
“Despite sales improvements post-holiday, trends softened in late January and into the fourth quarter. As a result, the Company now expects full year fiscal 2017 comparable store sales to decline approximately 7%, and consolidated EBITDA to be in a range of $180 million to $190 million, excluding the impact of any charges related to its cost reduction initiatives and costs associated with the CEO departure,” the company said in its earnings statement.