With the Nook dragging down profits all around, Barnes & Noble reported a 3,1% revenue fall for fiscal 2016, with a net loss of $24.4 million. In 2015 B&N had a profit of $36.6 so that is…a $50 million swing. Ouch. Actual book sales were still strong however.
Revenue in fiscal 2016 was $4.16 billion, down from $4.30 billion a year ago. The retailer also reported a net loss of $24.4 million in the most recent year, compared to net income of $36.6 million in fiscal 2015. Excluding the $39.1 million loss from discontinued operations, B&N posted earnings of $14.7 million, down from $32.9 million in income from continuing operations in fiscal 2015.
As usual, the retail division performed much better than the Nook unit in the year. Full year revenue at the stores was $4.03 billion, down 1.9% from fiscal 2015, while EBITDA (earnings before interest, taxes, depreciation and amortization) fell from $317.7 million in fiscal 2015 to $215.2 million in fiscal 2016. Comparable store sales were flat in the year, while comp sales excluding the sale of Nook products rose 0.4%, slightly behind the 1% increase that B&N had expected.
You can read more of the report numbers here.
B&N held an “investor’s webinar” this morning which you can view here. They announced a new “Restaurant Group” to be headed up by current COO Jaime Carey. His new title is President of Development & Restaurant Group. Michael Ladd was promoted to Vice President, Stores. They’ll report to CEO Ron Boire.
As for the “restaurant group,” it’s relaly more of a small squad, as B& will open four new “concept”stores that have a fuller food and drink menu, including beer and wine. Because nothing is easier than running a restaurant. Snark aside, bookstore/restaurants are common on the artisanal kale trail, so without listening to the webinar, I can see these fitting into 2016 lifestyles.
ripplingg the pond, signs of instability at B&N can only cause more beads of sweat to form on publishing industry foreheads.