Barnes & Noble Revenue and Profit Drop20 Aug, 2013 By: Chris Tribbey
Retailer Barnes & Noble reported an 8.5% drop in its 2014 fiscal first quarter to $1.3 billion and a net loss of $87 million, compared with a loss of $39.8 million to the same quarter last year.
The company also announced that its founder and chairman Leonard Riggio has dropped plans to acquire Barnes & Noble’s retail segment.
“While I reserve the right to pursue an offer in the future, I believe it is in the company’s best interests to focus on the business at hand,” he said in a statement. “Right now our priority should be to serve the more than 10 million customers who own Nook devices, to concentrate on building our retail business, and to accelerate the sale of Nook products in our stores and in the marketplace.”
The retailer’s fiscal first-quarter results saw revenue for its retail segment — which includes Barnes & Noble bookstores and BN.com — drop 9.9% to just more than $1 billion. Barnes & Noble pointed to store closures, lower online sales and a comparable store sales decrease of 9.1% for the drop in revenue.
Barnes & Noble’s Nook segment, which includes the company’s digital business, reported revenue of $153 million, down more than 20%. Device and accessory sales were $84 million, a decrease of 23.1%, and digital content sales were $69 million, a decline of 15.8%.
The retailer’s college bookstore segment saw revenue of $226 million, up 2.4%.
“We are working on innovative ways to sell content to our existing customers and are exploring new markets we can serve successfully,” said Michael P. Huseby, president of Barnes & Noble and CEO of Nook Media. “The company intends to continue to design and develop cutting-edge Nook black-and-white and color devices.”