Barnes & Noble Posts $118.6 Million Loss25 Jun, 2013 By: Chris Tribbey
Retailer Barnes & Noble reported a fiscal 2013 fourth-quarter loss of $118.6 million June 25, blaming the results on poor sales of its Nook e-readers and tablets.
The loss was more than double the $56.9 million the company reported for the same quarter in 2012. Revenue for the 2013 quarter was $1.3 billion, down 7.4%.
Barnes & Noble’s retail segment produced $948 million in revenue, down 10% year-over-year, with same store sales down 8.8%. Online sales were also down.
The company’s Nook segment — which includes devices, digital content and accessories — produced revenues of $108 million for the quarter down 34% year-over-year. Digital content sales were down 8.9% for the fourth quarter.
“Our retail and college businesses delivered strong financial performances in fiscal year 2013,” said CEO William Lynch. “We are taking big steps to reduce the losses in the Nook segment, as we move to a partner-centric model in tablets and reduce overhead costs. We plan to continue to innovate in the single purpose black-and-white e-reader category, and the underpinning of our strategy remains the same today as it has since we first entered the digital market, which is to offer customers any digital book, magazine or newspaper, on any device.”
During a conference call with investors, the company shared that it had a net loss of 16 retail bookstores in fiscal 2013.