Barnes & Noble Education loss grows in Q4; plans new stores
Restructuring costs helped increase fourth quarter net loss at Barnes & Noble Education Inc. to $2.8 million from $300,000 in the fourth quarter of fiscal 2015.
Not all the fourth quarter fiscal news was negative, however. Total sales rose 8% to $294.8 million from $274 million, aided by a 4.5% increase in same-store sales.
In addition, Barnes & Noble Education plans to open 32 new stores in fiscal 2017, with openings more heavily weighted to the early part of the year. The retailer estimates first-year sales of approximately $110 million from the new stores.
For the full fiscal year 2016, net income fell 99% to $100,000 from $19.1 million. Impairment charges and restructuring costs fueled the significant decline in profits. Fiscal full-year sales were $1.81 billion, an increase of 2% as compared to $1.77 billion the prior-year period. Same-store sales decreased 1.9%, driven by the enrollment declines at two-year community colleges.
“Following our separation from Barnes & Noble, Inc. last year, we have made solid progress executing on our standalone strategy,” said Max J. Roberts, CEO of Barnes & Noble Education Inc. “Our fourth quarter comparable sales increase was driven by strong textbook sales and rentals, as well as general merchandise revenue, which increased 2.6% on a comparable basis driven by strong graduation products and emblematic apparel.”
For fiscal year 2017, the company expects total sales to grow by 2-4%, while same-store sales are expected to be approximately flat to 2% lower than the prior year.