Barnes & Noble Narrows Q4 Nook Loss22 Jun, 2017 By: Erik Gruenwedel
National bookseller Barnes & Noble June 22 said its Nook Digital Business unit posted a fourth-quarter (ended April 29) operating loss of $7.9 million on revenue of $32 million. That compared with an operating loss of $23.9 million on revenue of $42 million during the previous-year period.
Nook includes Nook Video (electronic sellthrough, packaged media and transactional VOD), in addition to the Nook tablet.
“While fiscal 2017 proved to be a challenging year for the company, we reduced costs by $137 million, enabling us to sustain our profitability level,” said CEO Demos Parneros. “In fiscal 2018, we are focusing on ways to improve the business and reignite sales through an aggressive test and learn process and companywide simplification process that will take out costs.”
Indeed, the company is rolling out test stores with smaller footprints and focusing on consumer trends, in addition to books.
“Nook is also an important component of our omni-channel [integrating ecommerce in a physical store or by phone] offering any book in any format. We worked hard to reduce Nook losses by $47 million to $17 million in fiscal '17 and we remain committed to reducing them further in fiscal '18,” Parneros said.