Fretting about the state of Barnes & Noble’s bookstores is put into perspective by reports from the UK on the performance of Waterstone’s. A government corporate filing showed just how badly the chain had been suffering. It’s important to underscore that the results everyone is writing about are old–they cover the fiscal year ending almost a year ago, in April 2012. The bookseller had a £25.4 million operating loss, and a £37.3 million after-tax loss. Sales fell 14 percent, down to £410.4 million, and same-store sales dropped 11.1 percent. Managing director James Daunt blamed the result on “what I inherited…. […]
Booksellers
Amazon’s Slim Profit Gets Smaller Still; Bezos Confirms eBooks A “Multi-Billion Dollar Category”
Amazon reported fourth quarter sales after the close of the market on Tuesday, coming in at the low end of their own sales projections. That means that sales of $21.27 billion, up 22 percent, also fell $1 billion short of analysts’ expectations. The company did show some net income–but it was a slim $97 million or 21 cents per share, again short of investors’ expectations. (Net income is also much lower than the same quarter a year ago, when they earned $177 million.) But operating income rose–at $405 million, 55 percent better than a year ago, and better than the forecast […]
Bookselling Briefs: WH Smith’s Decline; BN Closes Pearson Deal
UK-based WH Smith reported headline sales results for the past 20 weeks consistent with their recent pattern: High-street sales were down 5 percent (both overall and on a same-store basis), while their network of travel stores was also down 5 percent (but only 4% on a same-store basis). But they say they “delivered a good profit performance,” and at the High-street stores “gross margin improved strongly in the period.” Note the pattern in our previously clipped stories for the past year: – WH Smith Comps Down 4% (and 5% At High Street Stores) | clipped Wednesday, November 14, 2012 – […]
Nook Sales Fall 12.6 Percent Over Holidays, As Core BN Store Sales Also Declined
Barnes & Noble followed up their pre-New Year’s sales warning with a fuller holiday sales report: Same-store sales at the BN superstores and BN.com fell 8.2 percent (and 10.9 percent overall), at $1.2 billion for the nine-week period. Much of the decline was due to weaker sales of Nook devices and accessories but even leaving that product line aside, “core” store sales still declined 3.1 percent compared to last year “due to lower bookstore traffic.” (A core decline had been forecast, however, in the low-to-mid single digits, and the company said those sales “exceeded expectations.”) In the last quarter BN management […]
Bookselling: More BN Stores to Close; Foyles Turns a Smaller Profit in 2012; And More
Barnes & Noble will close both of its stores in Irving, TX on December 31. The Irving mall and Las Colinas locations are shutting down “as part of the national book store’s recent business decision to reevaluate low-selling locations,” according to neighborsgo.com. It goes along with the pattern in which BN closes stores when the leases expire if they cannot agree on acceptable renewals: December 31 will also see the shutdown of stores in Westlake, TX; Plainfield, IL; Campbell, CA; and, as previously reported, the Sixth Avenue store in New York’s West Village. BN will also close a store in […]
Nook Growth Remains Moderate in Barnes & Noble’s Second Quarter, Weighing On Share Price
For the second straight quarter, Barnes & Noble beat Wall Street’s diminished expectations, with a reduced net loss of 4 cents a share (or $7 million) versus the predicted loss of 6 cents to 11 cents. EBITDA rose as well at $64.8 million, a 16 percent increase compared to a year ago, and while retail bookstore sales declined, those profits doubled. Though full holiday results won’t be reported until January 3, BN said Nook device sales “doubled over the four-day Black Friday weekend, across all channels” as compared to last year. The biggest likely concern–that we have pointed to before–is […]