Barnes & Noble (BKS 7.10, -0.75) has tumbled 9.6% after missing first quarter expectations. Today's decline puts the stock within a point of this year's low of $6.25, which was notched in late June.
The struggling retailer reported a below-consensus first quarter loss of $0.15 per share on a 6.7% year-over-year decline in revenue to $853 million, which was also shy of expectations.
Comparable sales fell 4.9% year-over-year with declines in non-book categories outpacing improved book sales trends. Online sales and sales of the NOOK device also declined with pressure from the prior year's eBook settlement and lower promotional activity. Gross margin declined to 29.7% from 30.4% one year ago.
Barnes & Noble reported a first quarter operating loss of $15.20 million, which represented a $6.20 million year-over-year improvement. The retail segment was responsible for $12.50 million of the total loss while the NOOK segment recorded a loss of $2.70 million.
The company's consolidated EBITDA improved to $11.20 million from $9.60 million one year ago. Retail EBITDA declined by $7.00 million to $10.60 million due to a drop in comparable store sales, which outweighed expense reduction efforts. NOOK EBITDA totaled $600,000, up from a loss of $7.95 million one year ago. Expense reductions were largely responsible for the improvement.
Looking ahead, Barnes & Noble expects that comparable bookstore sales will decline in the low single digits while consolidated EBITDA for the full year is expected to reach $180 million.