Friday, October 21, 2016
Joined Nov 11, 2007
31,930 Blog Posts

$BKS Misses Expectations, Nook Loses Revenues

“Barnes & Noble has reported Q3 2013 earnings for the fiscal three-month period ending January 31, with a loss of $0.18 per share on quarterly revenues of $2.2 billion. That’s down 8.8 percent from the same period last year, when B&N reported gains of $0.71 per share.

Net losses in Q3 totaled $6.1 million, a clear drop from net earnings of $52 million a year ago.

Analysts predicted revenues of $2.4 billion, and an EPS of $.54. Last quarter saw revenues of $1.9 billion and losses of $0.04 per share.

Q3 has been a messy one for the retailer, which started out as a college text book store. The holiday period, which is usually a sure spike for retailers, left Barnes & Noble with a 10.9 percent sales decrease on B&N retail and from the same time last year. B&N blames this on declining Nook hardware sales at its retail locations.

Reports are floating around that Barnes & Noble may spin out its Nook hardware business, or perhaps focus its OEM vision on partnerships with Microsoft.

Barnes & Noble denies the reports, with CEO William Lynch stating today that the company is adjusting the Nook strategy and righting the segment’s cost structure. But based on the widening losses compared to Barnes & Noble’s glory days, a drastic change could be needed….”

Full report

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