Tags: Earns | Barnes andNoble

Barnes & Noble's Loss Widens on E-reader Investment

Tuesday, 21 Jun 2011 10:17 AM

Barnes & Noble reported a larger fourth-quarter loss than analysts expected Tuesday as the bookseller continues to invest heavily in its e-book reader Nook and as liquidation sales by rival Borders hurt its revenue.

Shares fell 56 cents, or 2.8 percent, to $19.58 in morning trading.

The largest U.S. specialty book retailer said its net loss came to $59.4 million, or $1.04 per share, for the three months ended April 30. That compares to a net loss of $32 million, or 58 cents per share, a year ago.

Analysts expected a loss of 91 cents per share, according to FactSet.

Revenue rose 4 percent to $1.37 billion from $1.32 billion last year. That fell slightly short of the $1.39 billion analysts expected. Revenue in stores open at least one year fell 2.9 percent.

The measure is considered a key gauge of a retailer's financial health because it excludes stores that open or close during the year.

The company says results were hurt by Borders' liquidation sales at 200 of its stores. Borders filed for bankruptcy protection in February.

But revenue from other sectors rose. Online revenue rose 54 percent to $217.3 million and college bookstore revenue rose 4 percent to $211.2 million.

Barnes & Noble said it is still reviewing the unexpected $1 billion takeover in May from John Malone's Liberty Media and declined to give any 2012 guidance.

For the full year, the company reported a loss of $73.9 million, or $1.31 per share, compared with net income of $36.7 million, or 63 cents per share.

Revenue rose 21 percent to $7 billion from $5.81 billion last year.

Barnes & Noble is investing heavily in its e-book readers and e-bookstore as it hopes to stay afloat in a changing book-reading landscape and tough competition from discounters and online retailers that brought down its chief rival Borders Group.

The company introduced a new $139 Nook that began shipping in June and also offers a NookColor for $249.

Barnes & Noble operates 705 bookstores in 50 states.

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Barnes Noble reported a larger fourth-quarter loss than analysts expected Tuesday as the bookseller continues to invest heavily in its e-book reader Nook and as liquidation sales by rival Borders hurt its revenue.Shares fell 56 cents, or 2.8 percent, to $19.58 in morning...
Earns,Barnes andNoble
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2011-17-21
 

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