Barnes & Noble Education reported sales and earnings for the third quarter and year to date periods for fiscal 2016.
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Fiscal year to date sales of $1,513.3 million increased $14.3 million, or 1%, as compared to the prior year period.
Third quarter sales of $518.4 million decreased $3.2 million, or 0.6%, as compared to the prior year period. The Company reported a net loss of $(3.6) million, including a non-cash impairment loss of $8.5 million, net of tax.
Excluding the impairment loss, the Company reported non-GAAP net income of $4.9 million during the 13 weeks ended January 30, 2016 which is $3.8 million lower than the prior year period.
Barnes & Noble Education comparable store sales decreased 4.1% for the quarter. Consistent with the past, the Spring Rush period extended beyond the quarter due to later school openings, as well as to the continued pattern of students buying course materials later in the semester.
Factoring in the three additional weeks of February, comparable store sales decreased 2.9%, which is a slight improvement from similar comparable results for the second quarter.
Comparable store sales excluding two year community colleges decreased by 2.2% for the quarter and 0.9% year to date; and factoring in the three additional Spring Rush weeks decreased 1.2% for the quarter and 0.5% year to date.
In an effort to reduce and manage digital expenditures, while at the same time maintaining high quality digital products, Barnes & Noble Education has taken the following actions: it is closing its Yuzu offices and eliminating staffing in California and Washington, resulting in non-cash impairment and restructuring charges; the company worked with VitalSource, a part of the Ingram Content Group; and the company acquired LoudCloud Systems.
Barnes & Noble Education has established a long-term relationship with VitalSource, a company that builds, enhances and delivers digital content. This collaboration will allow the company to significantly lower its future digital expenses. ■