B&N posts $125m loss in fiscal 2018
US retail chain Barnes & Noble (B&N) reported a total sales decline of six percent in the fiscal year ending 28 April 2018, with revenue falling to US$3.66 billion (A$4.95bn), reports Publishers Weekly.
The retailer posted a net loss of US$125.5 million (AU$169.9m) in fiscal 2018, compared with a net income of US$22 million (A$29.7m) in fiscal 2017.
The net loss included several one-time charges, such as impairment charges of US$135.4 million (A$183.2m), severance charges of US$16.2 million (A$21.9m), and strategic initiative costs of US$15.3 million (A$20.7m). However, even excluding the one-time charges in both fiscal years, the retailer’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) was US$145.4 million (A$196.8m) in fiscal 2018, down from US$187.2 million (A$253.4m) the previous year.
Comparable store sales declined 5.4% for the full year, and revenue in B&N’s bookstore segment fell by 5.5% in 2018. Nook sales dropped by 24%.
CEO Demos Parneros said the company had developed ‘a long-term strategic turnaround plan’ in fiscal 2018. ‘Our plan, which includes sales improvements and cost reductions, is expected to yield immediate improvement in fiscal 2019, resulting in EBITDA of $175 million to $200 million, and further benefits in the following years,’ said Parneros, adding that a strengthened leadership team in key areas of the business would be ‘instrumental in overseeing the turnaround’.
Category: International news