Try to figure this one out. BKS is higher by 6% in the after-hours after reporting worse than expected results for both the bottom and top line. Comps for their stores fell by 1%, while Nook sales plunged in the magnitude of 20%.
Perhaps investors are stoked around the idea of the launch of 10 concept stores set to launch. Or, maybe they just like to buy dips in stocks who just reported abysmal earnings.
If you enjoy the content at iBankCoin, please follow us on TwitterReports Q4 (Apr) loss of $0.42 per share, $0.18 worse than the Capital IQ Consensus of ($0.24); revenues fell 3.7% year/year to $876.7 mln vs the $879.23 mln Capital IQ Consensus.
Comparable store sales declined 0.8% for the quarter and were flat for the full year, in-line with Company guidance. “Core” comparable store sales, which exclude sales of NOOK products, declined 0.8% for the quarter, while increasing 0.4% for the full year, slightly below expectations of an ~1% increase. Sales for both the quarter and the year were also impacted by store closures and lower online sales.
NOOK sales, which include digital content, devices and accessories, were $42.0 million for the quarter and $191.5 million for the full year, decreasing 20.0% and 27.4%, respectively, due primarily to lower device and content sales.
“We believe our marketing, merchandising and Membership initiatives will lead to increased traffic and conversion in our stores. We are also excited about our plans to open four new concept stores opening later this year, beginning with the first store opening this October in Eastchester, NY. We look forward to discussing these initiatives at our Investor Day.”
For fiscal year 2017, the co expects comparable bookstore sales to be ~flat to an increase of ~1%. The Company also expects full year consolidated EBITDA to be in a range of $200-250 mln, with Retail EBITDA of $240-280 million and NOOK EBITDA losses declining to a range of $30-40 million, including previously announced transitional costs.
