Friday, June 23, 2017

Publishers Lunch

Today's Meal

Barnes & Noble continued to suffer from declining sales in their fourth quarter, ending April 29, but a reduced loss in the period and improved earnings for the fiscal year gave investors some confidence. After closing Wednesday near an all-time low of $6.50 a share, investors were relieved by the improvement in profits and stabilization at the company, sending the stock back up by roughly 7 percent in the first hour of trading, returning to around $7 a share.

Sales for the quarter were $821 million, down 6.3 percent both overall and on a same-store basis. Online sales nudged up 2.9 percent. The retail segment recorded an operating loss of $15.9 million in the quarter while Nook had a loss of $7.9 million, but the "consolidated" loss of -$13.4 million was better than -$30.6 million a year ago.

For the full year, the company met their guidance on EBITDA, which was considered critical, and generated increased actual operating income, of $54.3 million. (Retail earned $90.7 million and Nook lost $36.4 million.) Consolidated EBITDA was $172.2 million, up from $150.5 million a year ago. Retail EBITDA actually fell, down $25.6 million on the lower sales, but the Nook losses got better as well.

Full year sales were $3.895 billion, down form $4.164 billion a year ago, dropping $269 million, or 6.5 percent. Same-store sales were down 6.3 percent for the full year, though online sales rose 3.7 percent during the year, up $10.8 million, thanks to ebook settlement credits as well as "site improvements and increased promotional activity."

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