Barnes & Noble trims losses despite weaker sales
Struggling bookseller is working to lower expenses and turn around its store operations
Barnes & Noble Inc. narrowed its losses in the latest quarter as the struggling bookseller worked to lower expenses and turn around its store operations.
The nation’s largest bookstore chain reported a second-quarter loss of $27.4 million (U.S.), or 38 cents a share, compared with a year-earlier loss of $30.1 million, or 41cents a share. Analysts had expected a loss of 41 cents a share.
Comparable sales for Barnes & Noble fell 1.4% from a year ago, as analysts polled by FactSet expected a 1.8% decline. Total sales fell 2.5% to $771.2 million.
Selling and administration expenses fell 10%.
Shares of Barnes & Noble, which have gained 0.9% this year, rose 0.6% in premarket trading to $6.80 on Tuesday.
Barnes & Noble’s operations have been pressured by the continuing migration of retail shopping online. In September Barnes & Noble said it was eval- uating a possible sale and had received interest from multiple parties, including from its executive chairman Leonard Riggio.
The bookseller is also dealing with a lawsuit filed by its former chief executive, Demos Parneros, who was fired in July with- out severance for allegedly violating company policies.
In late August, Mr. Parneros filed a lawsuit in Manhattan federal court against Barnes & Noble, claiming he was fired “without warning or justification.”
Mr. Parneros said in the lawsuit his firing came after a deal to sell the company fell through in early June. The Wall Street Journal reported that the potential buyer in question was U.K. bookseller WH Smith PLC, citing sources. Barnes & Noble fired back, claiming in a filing that Mr. Paneros had intended to sabotage a potential sale by engaging in a “shocking monologue portraying the company in an extremely and unduly negative light.”
The latest results also come as the retailer is gearing up for the holiday shopping season.
“While we cannot predict the outcome of the holiday, we are putting our full effort behind our holiday plans, including launching a new ad campaign,” said Mr. Riggio in prepared remarks.
“We expect this to lead to continued sales improvement during the holiday period.”