November 20, 2018
National bookseller Barnes & Noble Nov. 20 reported second-quarter (ended Oct. 27) operating loss of $1.5 million for its Nook business unit – down 48% from an operating loss of $2.9 million during the previous-year period. Revenue dropped nearly 17% to $21.7 million from $25.9 million last year.
The Nook segment, which includes electronic readers and tablets, in addition to digital content (movies, TV shows, music), continues to a bright spot for Barnes & Noble. The last-standing national bookstore chain continues to grapple with a changing consumer habits underscored by online entertainment and ecommerce.
Even better, legacy retail sales – which include packaged media – improved with operating loss of $26.7 million compared to an operating loss of $49.43 million last year. Revenue dipped about 2% to $753.2 million.
Chairman of the board Len Riggio, who took over control of the company following the firing of CEO Demos Parneros for alleged inappropriate behavior in the workplace, said the same-store sales decline of 1.4% was the best result since Q4 in 2016.
“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,” Riggio said in a statement. “We expect this to lead to continued sales improvement during the holiday period.”