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Barnes & Noble Narrows Q1 Nook Loss

19 Sep, 2017 By: Erik Gruenwedel

National bookseller Barnes & Noble saw its Nook Digital Business unit post first-quarter (ended July 29) operating loss of $2.7 million on revenue of $29.5 million. That compared with an operating loss of $14 million on revenue of $41 million during the previous-year period.

Nook includes Nook Video (electronic sellthrough, packaged media and transactional VOD), in addition to the Nook tablet.

The reduced fiscal loss helped Barnes & Noble narrow its net loss to $10.7 million on revenue of $853 million. The chain reported a net loss of $14.4 million on revenue of $913 million a year ago.

Comparable store sales decreased 4.9%, as declines in non-book categories outpaced improved book trends during the quarter. Barnes & Noble also experienced lower online sales, which were impacted by the prior year eBook settlement and lower promotional activity.

“Our first quarter earnings results improved … as we were able to mitigate the sales decline through expense reductions,” CEO Demos Parneros said in a statement. “We expect to improve our performance in the back-half of the year, which coupled with our focus on expense reduction, will enable us to achieve [pre-tax earnings] of $180 million.”

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