It’s been a tough competition to see which branch of the divided Barnes & Noble can register the most disappointing performance, with Barnes & Noble Education taking the lead in reporting disappointing first quarter fiscal 2018 earnings. The consolidated net loss grew to $34.8 million, or 75 cents a share, compared to a loss of $27.9 million a year ago — and against analysts’ expectations of a loss of 55 cents a share. In early Wednesday trading, shares are down more than 15 percent as a result to a new all-time low of about $5.75 a share. That puts their market capitalization at about $265 million, over 60 percent below where the company stood when it was spunoff as a separate entity in July 2015.
Same-store sales fell 2.5 percent, “in line with expectations” and “primarily attributable to textbook sales, which were down 8.5 percent.” Comp sales are”projected to decline in the low- to mid-single digit percentage point range year over year.” First quarter sales of $355.7 million were up considerably, gaining $116.5 million, “primarily due to the MBS acquisition,” and they opened 24 new physical stores during the period.
The retirement of ceo Max Roberts means they paid him $4.4 million in salary, bonus and benefits, plus a “one-time cash transition payment” of $500,000 — with another transition payment of $300,000 to new ceo Mike Huseby.