As loss widens, Barnes & Noble to place greater emphasis on its core category
In the wake of a wider loss than expected and a continuing sales slide in its second quarter, Barnes & Noble plans to a greater emphasis on what brought it the party in the first place: books.
The struggling retailer posted a consolidated second quarter net loss of $30.1 million, or $0.41 per share, compared to a loss of $20.4 million, or $0.29 per share, in the year-ago period. Analysts had expected a loss of 26 cents per share.
Total sales for the quarter fell 7.9% to $791.1 million. Same-store sales decreased 6.3%, with approximately half of this decline attributable to last year's release of Harry Potter and The Cursed Child, the company said, with the balance primarily due to non-book categories. It was Barnes & Noble's 14th straight quarter of revenue decline.
“Comparable sales improved throughout the second quarter and into November,” said Demos Parneros, CEO of Barnes & Noble. “Book sales continued to strengthen, and we saw improved traffic and conversion trends. As a result of the improving trends, we will continue to place a greater emphasis on books, while further narrowing our non-book assortment."
In recent years, Barnes & Noble has added more toys and games to its assortment. But its efforts have been met with falling sales. Its e-book business also has stalled.
For fiscal 2018, the company expects comparable sales to decline in the low single digits and full year consolidated EBITDA to be approximately $180 million. It expects comparable store sales to be approximately flat for the balance of the fiscal year. Additionally, it plans to reduce costs by $40 million for the full fiscal year.
The struggling retailer posted a consolidated second quarter net loss of $30.1 million, or $0.41 per share, compared to a loss of $20.4 million, or $0.29 per share, in the year-ago period. Analysts had expected a loss of 26 cents per share.
Total sales for the quarter fell 7.9% to $791.1 million. Same-store sales decreased 6.3%, with approximately half of this decline attributable to last year's release of Harry Potter and The Cursed Child, the company said, with the balance primarily due to non-book categories. It was Barnes & Noble's 14th straight quarter of revenue decline.
“Comparable sales improved throughout the second quarter and into November,” said Demos Parneros, CEO of Barnes & Noble. “Book sales continued to strengthen, and we saw improved traffic and conversion trends. As a result of the improving trends, we will continue to place a greater emphasis on books, while further narrowing our non-book assortment."
In recent years, Barnes & Noble has added more toys and games to its assortment. But its efforts have been met with falling sales. Its e-book business also has stalled.
For fiscal 2018, the company expects comparable sales to decline in the low single digits and full year consolidated EBITDA to be approximately $180 million. It expects comparable store sales to be approximately flat for the balance of the fiscal year. Additionally, it plans to reduce costs by $40 million for the full fiscal year.