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Barnes & Noble saw all sales going down in Q1 2017

Staff Writer |
Barnes & Noble reported sales and earnings for its fiscal 2017 first quarter ended July 30, 2016.

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Total sales for the first quarter were $913.9 million, declining 6.6% as compared to the prior year. Retail sales, which include Barnes & Noble stores and BN.com, declined 6.1% to $881.7 million for the quarter.

Comparable store sales declined 6% for the quarter, softer than Barnes & Noble’s expectations, due in large part to lower traffic and the challenging retail environment. NOOK sales, which include digital content, devices and accessories, declined 24.5% to $41.0 million for the quarter.

Retail incurred an operating loss of $7.4 million during the quarter, which includes severance charges and consulting fees of $7.9 million resulting from Retail’s cost reduction initiatives.

NOOK incurred an operating loss of $14.0 million, which includes severance and transitional costs of $7.2 million related to the previously announced outsourcing of certain NOOK services and the closure of its California and Taiwan offices.

The consolidated first quarter net loss from continuing operations was $14.4 million, or $0.20 per share, as compared to a loss from continuing operations of $7.8 million, or $0.27 per share, in the prior year.

Excluding the charges noted above, the consolidated first quarter net loss from continuing operations would have been $5.0 million, or $0.07 per share.

Retail generated EBITDA of $17.6 million, inclusive of the Retail charges. Excluding the charges, Retail EBITDA would have been $25.5 million, a decline of $19.8 million versus the prior year, primarily as a result of the sales decrease.

NOOK EBITDA losses were $7.9 million, which includes the NOOK charges noted above. Excluding the charges, NOOK EBITDA losses would have been $0.7 million, improving $16.6 million as compared to a year ago, due primarily to Barnes & Noble’s cost rationalization efforts.

On a consolidated basis, Barnes & Noble generated first quarter EBITDA of $9.6 million. Excluding the charges noted above, consolidated EBITDA would have been $24.7 million, or $3.2 million lower than the prior year.

During the quarter, Barnes & Noble returned $20.8 million in cash to its shareholders, including $11.1 million in dividends and $9.7 million through share repurchases.

Barnes & Noble acquired approximately 830,000 shares at an average price of $11.73 during the quarter under its share repurchase program.


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