Barnes & Noble (BKS) Misses Q2 EPS by 5c; NOOK Sales Fell 32%

Barnes & Noble (NYSE: BKS) reported Q2 EPS of ($0.36), $0.05 worse than the analyst estimate of ($0.31). Revenue for the quarter came in at $894.7 million versus the consensus estimate of $917.83 million.

The second quarter EBITDA loss was $20.5 million, which included a $10.5 million executive severance charge related to the Barnes & Noble College spin-off. Excluding this charge, the EBITDA loss was $10.0 million, a $2.2 million improvement over the prior year.

Retail comps fell 1 percent. Comps were down 0.5 percent, ex. NOOK.

NOOK sales of $43.5 million decreased 31.9% due primarily to lower content sales. NOOK EBITDA losses of $21.3 million declined $15.1 million versus the prior year as the company continues to reduce expenses.

Holiday Season Update

Through Black Friday weekend, third quarter comparable store sales excluding NOOK products increased 1.1%.

Outlook

For fiscal year 2016, the Company continues to expect comparable store sales to be approximately flat with the prior year. Excluding NOOK products, comparable store sales are expected to increase approximately 1%. The Company also expects full fiscal year EBITDA losses in the NOOK segment to decline versus the prior year.

For earnings history and earnings-related data on Barnes & Noble (BKS) click here.

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