Barnes & Noble, Inc. (BKS) Stock Drops on Disappointing Sales

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Barnes & Noble, Inc. (NYSE:BKS) shares took a hit Thursday as the company posted underwhelming sales.

Barnes & Noble, Inc.It appears as if the brick-and-mortar business for book sellers is on the decline as more and more people buy Kindles and other e-readers, as well as electronic copies of their favorite novels. It makes sense considering how much easier it is to travel with one electronic device rather than boxes and boxes of books.

The company’s earnings amounted to 96 cents per share over the course of its third quarter of fiscal 2017. Barnes & Noble now expects its fiscal 2017 sales to fall 7% compared to the previous year.

Additionally, retail sales declined 7.5% to $1.3 billion, and while online sales rose slightly, they weren’t enough to drive the company’s results up. Comparable stores sales also fell by 8.3%.

Net sales over the quarter fell a staggering 35.7% to $38.4 million. Barnes & Noble said that the lack of a big blockbuster book during the three-month winter period led to dim results for the company.

For its fiscal year, earnings will be at around $180 million to $190 million before interest, tax, depreciation and amortization. Analysts expect earnings to be slightly higher at $190.7 million.

The company also blamed the music industry as the new Adele album failed to garnet the results that the company was expecting this season.

BKS stock declined 6.6% Thursday.


Article printed from InvestorPlace Media, https://investorplace.com/2017/03/barnes-noble-inc-bks-stock-drops-disappointing-sales/.

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