Barnes & Noble’s quarterly SEC filing following the announcement of their first quarter results earlier this week contains a number of interesting revelations. The SEC investigation first disclosed in December 2013 (and first noticed by us) is nearing an end. While the agency has told BN “it does not intend to recommend any enforcement action” on the initial issues — a restatement of earnings, and an allegation from a former employee that they “improperly allocated certain information technology expenses between its Nook and retail segments” — another point of contention emerged along the way. “The SEC staff has identified an additional matter…resulting from certain historical […]
Earnings Reports
Barnes & Noble Stock Falls Nearly 28 Percent In A Day
Barnes & Noble’s stock started falling from the opening bell on Wednesday morning after the company reported bigger than expected losses (while management acted like everything was wonderful). But the selloff turned into a stampede late in the afternoon, with significant volume in final hour of trading pushing shares down $4.51 for the day, a decline of 27.7 percent, to close at $11.79 a share. The market as a whole turned negative in the afternoon as well, also trading down in the last hour, but the market movement was nothing like the bookseller’s falloff. In total, 9.45 million shares of […]
Another Soft First Quarter for Wiley
Wiley reported first quarter sales for the period ending July 30, with sales falling 3 percent to $423 million (down $15 million) on currency exchange, as half their sales come from the weaker pound and euro. Adjusted operating income of $44.9 million was down 10 percent for the quarter, and net income was down $2 million (or 4 percent) to $32.4 million. On a “constant currency” basis sales actually rose 2 percent, with foreign exchange subtracting $22 million in sales in the quarter. In the professional development division, which includes their remaining trade books, revenue rose 10 percent to $98.7 […]
BN Education Grow Sales and Store, But Not Earnings
Barnes & Noble Education issued its first quarterly report as an independent company — though this one doesn’t really count, since it covers results through August 1, and BNED became a separate entity the following day, on August 2. First quarter sales of $239 million rose $13 million, or 5.9 percent, compared to a year ago, but they had a bigger EBITDA loss of -$35.2 million ($1.2 million more than a year ago), “due primarily to higher expenses associated with new store growth in the non-rush first quarter and continued investments in digital education.” They have been steadily sinking money into their […]
Barnes & Noble Has Soft Sales, Bigger Loss, and Sharply Falling Stock
Barnes & Noble reported fiscal 2016 first quarter sales, through August 1, on Wednesday morning. Even with the high-profile summer releases, sales at the retail bookstores declined $16 million (or 1.7 percent) to $939 million for the quarter. “Core” Nook-free sales inched up 1 percent, and same-store sales rose 1.1 percent. But don’t infer that means they sold more books. “Comparable sales in books slightly declined,” the company said in their investor conference call, with toys and games still the growth star for the company, up 17.5 percent in the quarter. In the release, the company blamed the modest decline on “store closures, […]
Strong Dollar Lifts Penguin Random House; Buyout Talk Turns to Partial Sale
Bertelsmann reported results for the first half of 2015 from Germany on Monday morning, with the strong dollar powering topline gains at Penguin Random House. Sales of €1.697 billion were up 236 million euros compared to a year, and EBITDA of €207 million was €48 million higher than a year ago, both “mainly due to exchange rate effects.” (These totals include the separate Random House Germany, which was “near-stable” in the period. For all of 2014, RHG had sales of €279 million.) This reporting period also includes the incorporation of Santillana’s trade publishing lines (where were acquired on July 1, 2014), where […]