Barnes & Noble’s Revenue Fell 2.5% in Fiscal Q2 2019
Barnes & Noble just released their last quarterly report before entering the holiday season, and the news was not good. Revenues fell 2.5%. Total sales for the second quarter were $771 million in the quarter ending 27 October, with comparable store sales declining 1.4%.
B&N is going in to the holiday season with weak sales, but that is okay if they can turn their fortunes around. This was the second full quarter since B&N fired its receiving managers, and it’s going to be the quarter that makes or breaks the company.
I predicted they would file for bankruptcy in January, and their past quarterly reports have given me no reason to change my mind.
Barnes & Noble today reported sales and earnings for its fiscal 2019 second quarter ended October 27, 2018.
Total sales for the second quarter were $771 million, declining 2.5% as compared to the prior year. Comparable store sales declined 1.4%, the Company’s best quarterly performance since the fourth quarter of fiscal 2016.
“We saw significant improvement in our second quarter performance, especially notable in our comparable store sales,” said Len Riggio, Chairman of Barnes & Noble, Inc. “While we cannot predict the outcome of the holiday, we are putting our full effort behind our holiday plans, including launching a new ad campaign. We expect this to lead to continued sales improvement during the holiday period.”
The consolidated second quarter operating loss was $26.8 million, as compared to the prior year operating loss of $52.2 million, benefiting largely from expense reductions. The consolidated second quarter EBITDA loss was $2.3 million, as compared to a loss of $25.0 million a year ago, an improvement of $22.7 million over the prior year.
The consolidated second quarter net loss was $27.4 million, or $0.38 per share, as compared to a loss of $30.1 million, or $0.41 per share, in the prior year.
For fiscal 2019, the Company continues to expect EBITDA to be in a range of $175 million to $200 million, excluding unusual or non-recurring items.
A conference call with Barnes & Noble, Inc.’s senior management will be webcast beginning at 10:00 A.M. ET on Tuesday, November 20, 2018, and is accessible at investors.barnesandnobleinc.com.
Barnes & Noble, Inc. will report third quarter earnings on or about February 28, 2019.