Barnes & Noble Q3 Retail Core Comps Up 1.3%; Sees 2016 Comps To Be Flat

(RTTNews) - Barnes & Noble Inc. (BKS) reported that retail Core comparable store sales for the third quarter ended January 30, 2016 exhibited year-on-year growth, increasing 1.3% on top of a 1.7% increase a year ago, led by the continued strength of adult coloring books, as well as our Toys & Games, music and gift businesses.

"We are pleased with our bookstore sales performance and the reduction of NOOK losses during the fiscal third quarter. Our Retail Core comparable store sales exhibited year-on-year growth, increasing 1.3% on top of a 1.7% increase a year ago, led by the continued strength of adult coloring books, as well as our Toys & Games, music and gift businesses....... We are encouraged by the improved bookstore sales trends that are enabling us to close the least amount of stores since fiscal 2000 and are excited to introduce our new store concept later this year, with the opening of four new stores throughout fiscal 2017,"said Ron Boire, Chief Executive Officer of Barnes & Noble, Inc.

For fiscal year 2016, the company continues to expect comparable store sales to be approximately flat with the prior year. Excluding NOOK products, Core comparable store sales are expected to increase approximately 1%. The company also expects full fiscal year EBITDA losses in the NOOK segment to decline versus the prior year.

NOOK sales of $51.7 million decreased 33.3% due primarily to lower device and content sales. NOOK EBITDA losses of $11.2 million declined $17.9 million versus the prior year as the company continues to focus on cost rationalization efforts.

Retail sales, which include Barnes & Noble stores and BN.com, were $1.4 billion, decreasing 1.2% due to lower online sales and store closures. Comparable store sales increased 0.2% for the quarter. Excluding NOOK products, Core comparable store sales increased 1.3% for the quarter.