Revenues at the company’s retail bookstores and website were down 7.5% year over year in the quarter, as same-store sales fell 4.9%, because the company closed more stores and online sales were lower. In its college segment, sales fell 4.6%, and same-store sales in this segment fell by 3.6%.
Sales in Barnes & Noble’s Nook division were down 32% year over year, but the actual loss in the division was reduced by $6 million due to lower markdowns and expenses.
Not surprisingly, the company’s CEO focused on the current quarter:
The company is focused on executing its plans for the holiday season and our booksellers are prepared to welcome holiday shoppers and recommend thoughtful gift ideas for everyone on their list.
B&N affirmed its full fiscal year guidance, with retail same-store sales down in the high single digits, so-called core retail (excluding Nook sales) same-store sales down in the low- to mid-single digits, and college same-store sales down in the low single digits.
The consensus EPS estimate for the current quarter is $0.64, which seems way too high. In the same quarter a year ago, the consensus estimate called for EPS of $0.54 and B&N was only able to manage an EPS loss of $0.18.
B&N shares were down about 6% in mid-morning trading Tuesday, at $15.41 in a 52-week range of $12.59 to $23.71. Thomson Reuters had a consensus analyst price target of around $17.80 before the results were announced.
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