Barnes & Noble Turns To Profit In Q3

(RTTNews) - Barnes & Noble Inc. (BKS) reported that its third quarter net earnings were $66.9 million or $0.91 per share, compared to a loss of $63.5 million or $0.87 per share, in the prior year. Excluding the charges, adjusted third quarter earnings per share was $1.21 in the current year.

The consolidated third quarter operating profit was $79.2 million, as compared to the prior year operating loss of $34.9 million. Third quarter results include asset impairment charges of $22.1 million, and non-recurring professional fees of $5.1 million. The prior year quarter included asset impairment charges of $135.4 million, and severance charges of $10.7 million.

Total sales for the third quarter were $1.2 billion, flat with the prior year period. Comparable store sales increased 1.1%, reflecting the Company's best quarterly performance in several years.

Analysts polled by Thomson Reuters expected the company to report earnings of $1.10 per share and revenues of $1.24 billion. Analysts' estimates typically exclude special items.

"In fiscal 2019, we have been focused on growing the top line, which contributed to our best holiday in years," said Len Riggio, Chairman of Barnes & Noble, Inc. "Sales benefitted from our new ad campaign, increased marketing and promotions, and an improved omni-channel experience for our customers. We believe these efforts are laying the foundation for sustained growth."

The company expects fiscal 2019 EBITDA to be in a range of $140 million to $155 million, excluding unusual or non-recurring items. This outlook includes the impact of incremental investments the company is making in its business, as well as lower than expected post-holiday sales.