The company lost $34.9 million in the quarter, worsening from a $28.4 million loss in the year-ago period. Revenues were down 1.5%. Investors didn’t like the news, pummeling the stock, which was down over 27% for the day.
Sales in B&N’s Retail segment (the stores and BN.com) were down 1.7%, with comparable store sales down 1.1%. As has been the case in recent periods (see "Barnes & Noble Makes Money"), sales declines were all in the Nook; core comparable same store sales were up 1%. In addition to games and toys, Barnes & Noble called out its Get Pop-Cultured campaign during July as contributing in a positive way.
The Nook segment continues to drain Barnes & Noble. Sales were down 22.4%, with content sales down 28.0% and device sales down 6.2%. The relatively low decline in device sales was due to a successful trade-in promotion during the quarter. Expenses were down, but the segment’s EBITDA losses were still up, against positive adjustments in the year ago period.
Barnes & Noble’s growing division, which runs its college stores, was up 5.7%, but that’s not going to help going forward. The division has been spun off to a new public company since the end of the quarter, which reduces the growth prospects for the core company.