Barnes & Noble grows sales; to debut new store format

Barnes & Noble produced a same-store sales increase in its third quarter which, although meager, is an impressive accomplishment given intense competition from Amazon. In announcing its results on Thursday, the company also revealed that it will open four new prototype stores in its current fiscal year. The first is expected to open sometime this summer.



Sales for the company’s third quarter ended Jan. 30 declined 1.8% to $1.4 billion, due to lower online sales and some store closure. Same-store sales increased 0.2% and if the company NOOK products are excluded the comp increase was 1.3%.



“We are pleased with our bookstore sales performance and the reduction of NOOK losses during the fiscal third quarter. Our retail core comparable store sales exhibited year-on-year growth, increasing 1.3% on top of a 1.7% increase a year ago, led by the continued strength of adult coloring books, as well as our toys and games, music and gift businesses,” said Barnes & Noble CEO Ron Boire. “We are encouraged by the improved bookstore sales trends that are enabling us to close the least amount of stores since fiscal 2000 and are excited to introduce our new store concept later this year, with the opening of four new stores throughout fiscal 2017.”



The company ended the year with 640 stores. Boire noted significant work remains to improve sales at BN.com, but the site’s improved performance is encouraging and investments are being make to drive traffic and sales.



“We remain committed to providing a great digital reading experience to our customers, while exploring all opportunities to further reduce losses. Moving forward, our top priorities are growing bookstore and online sales, reducing Retail and NOOK expenses and growing our membership base,” Boire said.



The combination of modestly improved sales at existing stores and reduced losses helped the company produce net earnings from continuing operations of $80.3 million or $1.04 per share, up sharply from the prior year’s net earnings of $39 million, of 45 cents a share.



Barnes & Noble forecast flat comparable sales in 2016, but excluding NOOK comps are forecast to increase 1%.