Nook cost-cutting boosts Q3 profit at Barnes & Noble

New York – Cost-cutting and margin improvement in the struggling Nook e-reader segment helped Barnes & Noble Inc. boost consolidated net earnings 14% to $72 million in the third quarter of fiscal 2015, compared to $63 million in the year-ago period.



Consolidated revenue slipped 1% to $1.39 billion from $1.4 billion. Same store sales at Barnes & Noble Inc. (excluding Nook) increased 1.7%.



Michael P. Huseby, CEO of Barnes & Noble Inc., said the retailer’s quarterly performance reinforces the decision to separate the Barnes & Noble college bookstore business from the rest of the company.



“We are pleased with the performance of our businesses,” said Huseby. “This performance across all businesses further supports our belief that now is the right time to separate the college business. The separation will allow each business to optimize their strategic opportunities, given their respective growth profiles, and specifically enable college to pursue opportunities in the growing educational services market.”



Barnes & Noble announced plans in February to separate its college bookstore business from its main retail business by August. The company has been adding toys, games and other non-book items to its bookstores to boost sales.



For fiscal 2015, the company expects same store sales to decline in the low-single digits. The company also expects full fiscal year EBITDA losses in the Nook segment to decline versus the prior year.



Barnes & Noble operates 649 stores in 50 states.