Nook still a drag on Barnes & Noble

Barnes & Noble Inc. posted another disappointing quarter of financial results as the retailer continues to struggle against Amazon.com and declining Nook sales.



The bookseller reported a net loss of $19.42 million in the fourth quarter of fiscal 2015 ended May 2, down from a loss of $36.7 million in the year-ago period. Reductions in selling, general and administrative (SG&A) and interest expenses, as well as lower depreciation and amortization, drove the decline in net loss.Revenue declined 10% to $1.18 billion.In the Nook segment, cost rationalization efforts helped significantly reduce losses. Consolidated revenues dropped 10% to $1.18 billion from $1.32 billion.



“The company is successfully implementing strategic and operating initiatives resulting in the improved performance of each of our business units as evidenced by our 30% year-over-year consolidated EBITDA increase. We ended 2015 with an improved balance sheet, and also well positioned to move forward with a focus on operations and our customers,” said Michael P. Huseby, CEO of Barnes & Noble. “Our fiscal 2015 core comparable bookstore sales increased 0.5% benefiting from merchandising initiatives, coupled with an improving physical book business. NOOK significantly reduced its losses as a result of our cost rationalization efforts. College continued to grow its new business, improve its comparable store sales trends and develop its digital education platform, Yuzu™. By acquiring the external partnership interests in NOOK Media, we gained the operational and structural flexibility we now have. We expect to separate the Barnes & Noble, Inc. and Barnes & Noble Education businesses by the end of August, allowing each business to independently focus on their growth initiatives.”



For the fiscal year, Barnes & Noble swung to net earnings of $36.6 million, compared to a net loss of $47.3 million the same period a year earlier. Consolidated revenues decreased 5% to $6.07 billion from $6.38 billion.



Looking ahead, Barnes & Nobile expects to separate the Barnes & Noble Inc. and Barnes & Noble Education businesses by the end of August, allowing each business to independently focus on their growth initiatives. For fiscal year 2016, Barnes & Noble expects retail core same-store bookstore sales, which exclude sales of Nook products, to increase approximately 1%, while college same-store sales are also expected to increase approximately 1%.