Barnes & Noble swings to Q3 profit but outlook disappoints
Barnes & Noble Inc. swung to a profit in the third quarter amid higher-than-expected comp sales, but the bookseller is wary about the remainder of the year.
Net income totaled $66.9 million, or 91 cents a share, in the quarter ended Jan. 26, after a loss of $63.5 million, or 87 cents a share, in the year-ago period which included impairment charges. Adjusted per-share earnings came to $1.21, ahead of the $1.10 analysts were expecting.
Sales were flat at $1.2 billion, slightly below Street estimates. Same-store sales rose 1.1%, the company’s best quarterly performance in several years and higher than expected.
"In fiscal 2019, we have been focused on growing the top line, which contributed to our best holiday in years," chairman Len Riggio said in a statement. “Sales benefitted from our new ad campaign, increased marketing and promotions, and an improved omnichannel experience for our customers.
Barnes & Noble lowered its earnings guidance for the remainder of fiscal 2019. It now expects fiscal earnings before taxes and other reductions to fall between $140 million to $155 million as compared to its earlier range of $175 million to $200 million.
The company said it lowered outlook because of lower-than-expected post-holiday sales and higher investment expenses during its third quarter.
Net income totaled $66.9 million, or 91 cents a share, in the quarter ended Jan. 26, after a loss of $63.5 million, or 87 cents a share, in the year-ago period which included impairment charges. Adjusted per-share earnings came to $1.21, ahead of the $1.10 analysts were expecting.
Sales were flat at $1.2 billion, slightly below Street estimates. Same-store sales rose 1.1%, the company’s best quarterly performance in several years and higher than expected.
"In fiscal 2019, we have been focused on growing the top line, which contributed to our best holiday in years," chairman Len Riggio said in a statement. “Sales benefitted from our new ad campaign, increased marketing and promotions, and an improved omnichannel experience for our customers.
Barnes & Noble lowered its earnings guidance for the remainder of fiscal 2019. It now expects fiscal earnings before taxes and other reductions to fall between $140 million to $155 million as compared to its earlier range of $175 million to $200 million.
The company said it lowered outlook because of lower-than-expected post-holiday sales and higher investment expenses during its third quarter.