Barnes & Noble was down in pre-market trading this morning as it reported fiscal 2014 Q1 earnings. The company posted a drop in revenues of 8.5% to $1.3B for the quarter ended July 27. It also reported a consolidated net loss of $87M, or $1.56 per share, compared to a loss of $39.8M, or $.76 per share, in the prior year. The wider loss was driven by a decline in EBITDA, as well as higher income tax expense, it said. Also, B&N said its chairman, Leonard Riggio, has suspended his efforts to make an offer for the company’s retail business. Riggio said, “While I reserve the right to pursue an offer in the future, I believe it is in the company’s best interests to focus on the business at hand. Right now our priority should be to serve the more than 10 million customers who own NOOK devices, to concentrate on building our retail business, and to accelerate the sale of NOOK products in our stores, and in the marketplace.” On the retail side, which includes stores and BN.com, the bookseller notched $1B in revenues for a 9.9% drop. The company attributed the decline to a comparable store sales decrease of 9.1% for the quarter, store closures and lower online sales, which it said were in line with expectations. In the same period last year, B&N had an especially strong lineup that included the The Hunger Games and Fifty Shades Of Grey trilogies.
The NOOK businesses reported revenues of $153M for the quarter, a decrease of 20.2%. Device and accessories sales were $84M, down 23.1%. Digital content sales hit $69M, shaving off 15.8% compared to a year ago. READ MORE »
The raft of executive changes at Barnes & Noble announced today include a new CEO for its NOOK e-reader division after company CEO William Lynch resigned — effective immediately. The board of directors tapped Michael Huseby as CEO of NOOK Media LLC and president of Barnes & Noble; Lynch’s title has not been filled, while the NOOK CEO post is newly created. Max Roberts, CEO of Barnes & Noble College, will continue to lead the digital education strategy and report to Huseby. Huseby and Mitchell Klipper, CEO of the Barnes & Noble Retail Group, will report to B&N executive chairman Leonard Riggio. The changes come after the retailer reported disappointing financials for the three months that ended in April, along with an $18.3M charge to account for weak sales of its NOOK tablets and e-readers. That unit lost $108M, or -34%, during the quarter. The company said during the earnings call that it will “significantly reduce losses” in the business by finding partners to help make its color tablets. “We are taking big steps to reduce the losses in the Nook segment, as we move to a partner-centric model in tablets and reduce overhead costs,” Lynch said at the time. Shares of Barnes & Noble finished Monday mostly flat at $17.66, then dropped 4.6% in after-hours trading. Read More »
The retailer’s stock price is down about 10% in pre-market trading after it released disappointing financials for the three months that ended in April, along with an $18.3M charge to account for weak sales of its NOOK tablets and e-readers. Barnes & Noble had a net loss of $118.6M in the quarter, vs a $56.9M loss in the period last year, on revenues of $1.28B, -7.4%. The top line was below analyst expectations for $1.33B. The net loss at $2.11 a share — including one-time expenses — contrasts with forecasts for a 99 cent loss. B&N says that it is evaluating some previous financial reports “which may result in a revision” although it doesn’t believe that the amounts will be material. The NOOK business was clearly a sore spot with revenues of $108M, -34%. The company says that it will “significantly reduce losses” in the business by finding partners to help make its color tablets. Revenues for retail book sales fell 10% to $948M due in part to store closures and a drop in online sales — and what it says were tough comparisons to last year which had strong sellers with The Hunger Games and Fifty Shades Of Grey. Read More »
The book retail chain’s shares are up 8.1% in mid-afternoon trading, making it one of the day’s biggest gainers in the media pack. Barron’s appears to be largely responsible for the move after it seized this weekend on … Read More »
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 … Read More »
The stock is down 7.3% at midday following the book chain’s warning last night that there’s bad news ahead regarding its NOOK e-readers and tablets. It now forecasts that NOOK revenues for the fiscal year that ends … Read More »
So much for the hope that price cuts and favorable reviews would enable Barnes & Noble‘s NOOK tablets and e-readers to keep up with comparable products from Apple, Amazon, and Google. The No. 1 book retail chain says that NOOKs underperformed over the nine-week holiday season while revenues at the overall retail business fell 10.9% to $1.2B. “NOOK device sales got off to a good start over the Black Friday period, but then fell short of expectations for the balance of holiday,” CEO William Lynch says. “We are examining the root cause of the December shortfall in sales, and will adjust our strategies accordingly going forward.” The one saving grace of the numbers is that investors expected them to be worse. B&N shares are up 1.9% in early trading Thursday, after falling 3.9% yesterday. The company says that core sales — not including NOOK products — fell 3.1% over the nine-week holiday period at stores open at least a year. That was better than B&N expected, and means the results for the basic business should be down by low- to mid-single digits for the fiscal year that ends in April. The holiday season decline rises to 8.2% when you factor in the fact that B&N has fewer stores, and had lower online sales. Read More »
The stock is down about 6.5% in early trading following the leading bookstore chain’s earnings report that left open questions about whether it can keep up with online rivals led by Amazon that continue to take market share. Helped by $2.8M in dividends received from preferred shares, Barnes & Noble reported net income of $2.2M for the quarter ending in October — up from a $6.6M loss a year ago — on revenues of $1.88B, -0.4%. The revenue figure is slightly lower than the $1.91B that analysts expected. But excluding the dividend, the net loss attributable to B&N of 4 cents a share beat the Street’s forecast of a 6 cent loss. At the retail unit, which includes the bookstores and book sales at BN.com, revenues fell 2.9% to $996M. The company says that last year’s numbers were helped after Borders liquidated. But in stores open at least a year, sales (not including its NOOK eReaders and tablets) were up 1.8%. In college textbooks B&N revenues were up 0.4% to $773M. Meanwhile the NOOK operation — which includes the hardware as well as digital content — remains a mixed story: Revenues were up 5.6% to $160.3M but it still generates a cash flow loss as B&N invests in new products and overseas expansion. The company says that NOOK unit sales doubled in last week’s four day Black Friday period vs last year — which matches Amazon’s experience with its Kindles. Read More »
Shares rose 8.3% to $14.96 this afternoon after CEO William Lynch vigorously argued at a Liberty Media investors’ meeting that stock buyers aren’t giving the book retail chain its due. With a market price of about $884M, the company that … Read More »
Shares in Barnes & Noble were trading up ahead of the opening bell today as the company reported fiscal 2013 Q1 results. The bookseller’s consolidated Q1 net loss narrowed 28% to $41M as compared to a … Read More »
The stock is down 25% in early trading following the book store chain’s announcement that it may unload or spin off its Nook operation. “We see substantial value in what we’ve built with our Nook business in only two years, … Read More »
Investors seemed to like what they heard at today’s annual confab for John Malone’s Liberty Media. Shares of the hodge-podge of companies it either owns or controls were up on a day when the market was shaken by new fears that the European debt crisis will widen. Liberty Starz ended the day +1% and Liberty Capital was +0.5% after their parent said it will combine the two tracking stocks into a single asset-based security. But Live Nation was +6.7%, Barnes & Noble was +5%, and Sirius XM was +4.8% following CEO presentations to the Street.
Malone was more subdued than usual. But the executive who became a billionaire on the back of his devilishly complex deals — often to help him avoid paying taxes — got a chuckle in his response to a question about whether the changes in his tracking stocks will make their businesses confusing for investors. “We’ll get as complicated as we need to get to highlight value.” he said.
Sirius XM’s Mel Karmazin won the biggest laughs, though, with Read More »
Amazon stoked the hype around its new Kindle Fire tablet by shipping it a day ahead of schedule, the company announced today. That’s a smart move: In addition to the extra PR and customer goodwill it generates, the decision gives the online retailer one more day to sell videos, music, and books that will “offset the weaker margins (or even losses)” it may see this quarter by selling the tablet below cost, Caris & Co analyst Scott Tilghman says. Research firm iSuppli estimates that Amazon spends about $210 to make each Kindle Fire that it sells for $199. No wonder the promotion machine is in high gear: Hulu Plus — which is available on the iPad and Barnes & Noble’s new Nook Tablet — today joined the parade of content companies crowing about their Kindle Fire apps. A Hulu Plus subscription costs $7.99 a month, and can be used on any device that accommodates it. Hulu’s “never-ending mission is to bring you the world’s premium content when, where and how you want,” senior product manager Lonn Lee says in a blog post. Read More »
Barnes & Noble today unveiled its new Nook Tablet, which comes preloaded with apps from Netflix, Hulu Plus and Pandora. The boost in entertainment options compared with previous versions signals the company’s intention to compete in the space against the … Read More »
In May, John Malone’s Liberty offered to buy all of Barnes & Noble for $1B. But the offer stalled and the book retailer said Thursday that the takeover talks had been ditched in light of the $204M investment agreement. … Read More »