Barnes & Noble bucked pessimistic predictions today when it announced its fiscal third quarter revenue report. Sales were essentially flat in the 2018 holiday season when compared to the previous year.
B&N's revenues totaled $1.2 billion, down $423,000, while net earnings were $66.9 million compared to a net loss of $63.5 million in the same quarter last year. Sales at stores open at least a year rose 1.1%.
That is far better than I expected; I thought we'd be reading about B&N's bankruptcy filings today.
Edit: B&N's digital revenues were still atrocious; they fell 20% last quarter, to $24.3 million from $30.9 million.
B&N today reported sales and earnings for its fiscal 2019 third quarter ended January 26, 2019.
Total sales for the third quarter were $1.2 billion, flat with the prior year period. Comparable store sales increased 1.1%, reflecting the Company’s best quarterly performance in several years.
The consolidated third quarter operating profit was $79.2 million, as compared to the prior year operating loss of $34.9 million. Third quarter results include asset impairment charges of $22.1 million, and non-recurring professional fees of $5.1 million. The prior year quarter included asset impairment charges of $135.4 million, and severance charges of $10.7 million. Excluding these charges, third quarter adjusted EBITDA was $133.0 million, as compared to $139.5 million last year. Adjusted EBITDA decreased $6.5 million due to the increased marketing and promotional spend.
Consolidated third quarter net earnings were $66.9 million, or $0.91 per share, as compared to a loss of $63.5 million, or $0.87 per share, in the prior year. Excluding the charges noted above, adjusted third quarter EPS was $1.21 in the current year.
“In fiscal 2019, we have been focused on growing the top line, which contributed to our best holiday in years,” said Len Riggio, Chairman of Barnes & Noble, Inc. “Sales benefitted from our new ad campaign, increased marketing and promotions, and an improved omni-channel experience for our customers. We believe these efforts are laying the foundation for sustained growth.”
The Company expects fiscal 2019 EBITDA to be in a range of $140 million to $155 million, excluding unusual or non-recurring items. This outlook includes the impact of incremental investments the company is making in its business, as well as lower than expected post-holiday sales.