Barnes & Noble 4Q loss narrows

Jun 19, 2012

(AP) — Barnes & Noble said Tuesday that its fiscal fourth-quarter loss narrowed as the company continues to invest in its Nook e-reader business.

The loss was wider than analysts expected and its shares fell more than 6 percent in morning trading.

The largest U.S. traditional book retailer also broke out sales of its Nook e-reader for the first time. As it faces tough competition from online retailers and discount store, Barnes & Noble has invested heavily in the Nook e-reader and e-books. Results — the most transparent Barnes & Noble has been about the division to date — show that the division is a work in progress. Nook sales fell 11 percent to $164 million during the quarter as the company took back its Nook Simple Touch e-reader from retailers to make room for new inventory. But for the fiscal year, Nook sales rose 34 percent to $933 million.

"We grew our business in 2012 while continuing to make the necessary investments for the future of the business," said CEO William Lynch.

The largest U.S. traditional book retailer said its net loss in the three months ended April 28 totaled $57.6 million or $1.08 per share. That's smaller than its loss of $59.4 million, or $1.04 per share, a year ago. A tax charge hurt results by 10 cents per share. The total number of shares rose 1 percent during the quarter.

Analysts expected a smaller loss of 92 cents per share, according to FactSet.

Revenue was nearly flat at $1.38 billion. Analysts expected higher revenue of $1.48 billion.

Its shares fell 97 cents, or 6.4 percent, to $14.27 in morning trading. They are down 45 percent from their 52-week high of $26 in late April. They traded as low as $9.35 in January.

Retail revenue, which includes online revenue, rose 0.5 percent to $1.05 billion. Revenue from college bookstores rose 6 percent to $228 million.

Retail sales benefited from higher Nook sales, and demand for trilogies including "The Hunger Games" and "Fifty Shades of Grey."

Excluding Nook sales, revenue in stores open at least one year rose 7 percent for the quarter.

Nook device sales fell during the quarter due to higher third-party channel partner returns, lower selling volume and lower average prices, the company said.

Barnes & Noble said that it took back Nook Simple Touch inventory in order to make room in the supply chain for new products like its Nook Tablet. The $99 Simple Touch is Barnes & Noble's most basic e-reader. Barnes & Noble introduced the flashier $199 Nook Tablet, with a touch screen and tablet features, in November 2011.

The New York company struck a deal in April with Microsoft Corp. to help support its Nook business. Microsoft will invest $300 million to help create a subsidiary for Barnes & Noble's e-book and college textbook businesses, giving it a long-desired foothold that space. Microsoft receives a 17.6 percent stake in the venture.

For the fiscal year, its net loss narrowed to $68.9 million, or $1.41 per share, from $73.9 million, or $1.31 per share, a year earlier. Revenue rose nearly 2 percent to $7.13 billion from $7 billion a year ago.

Explore further: Monoprice takes on Amazon in trade of cheap electronics

1 /5 (1 vote)
add to favorites email to friend print save as pdf

Related Stories

Barnes & Noble unveils $199 Nook Tablet

Feb 21, 2012

US bookseller Barnes & Noble unveiled a new version of its Nook tablet computer Tuesday, a device with the same $199 price tag as Amazon's Kindle Fire.

Barnes & Noble falls on guidance cut, Nook review

Jan 05, 2012

(AP) -- Barnes & Noble is considering options for its quickly growing but expensive Nook e-book reading business, its latest attempt to regain profitability as the publishing industry adapts to the rising ...

Barnes & Noble reports 2Q loss, cuts guidance

Nov 24, 2009

(AP) -- Barnes & Noble on Tuesday posted a larger second-quarter loss than last year and lowered its profit forecast for this quarter in anticipation of weak holiday sales and high costs of launching its ...

Barnes & Noble's unveils $249 Nook Tablet

Nov 07, 2011

Barnes & Noble unveiled a $249 Nook Tablet Monday just ahead of the crucial holiday shopping season as the book retailer fights for a larger share of the lucrative e-book market.

B&N, Microsoft team up on Nook, college businesses

Apr 30, 2012

(AP) -- Barnes & Noble Inc. and Microsoft Corp. are teaming up to create a new Barnes & Noble subsidiary that will house the digital and college businesses of the bookseller and include a Nook application for Windows 8.

Recommended for you

Chinese tech giant Alibaba set to make a splash with US IPO

4 hours ago

The largest tech IPO of the year will come from a company that many Americans have never heard of. Alibaba Group - a Chinese e-commerce behemoth - has decided to go public in the U.S. after months of speculation that it would ...

Ex-Apple chief plans mobile phone for India

Apr 19, 2014

Former Apple chief executive John Sculley, whose marketing skills helped bring the personal computer to desktops worldwide, says he plans to launch a mobile phone in India to exploit its still largely untapped ...

Airbnb rental site raises $450 mn

Apr 19, 2014

Online lodging listings website Airbnb inked a $450 million funding deal with investors led by TPG, a source close to the matter said Friday.

User comments : 0

More news stories

Making graphene in your kitchen

Graphene has been touted as a wonder material—the world's thinnest substance, but super-strong. Now scientists say it is so easy to make you could produce some in your kitchen.