Barnes & Noble Cuts FY17 Comparable Store Sales Outlook; Q1 Comps. Down 6%

(RTTNews) - Barnes & Noble, Inc. (BKS) announced, given the softer than expected sales results to date, and the expected continuation of the challenging retail environment, the company now expects fiscal 2017 comparable store sales to decline in the low single digits. In June, the company projected fiscal 2017 comparable bookstore sales to be approximately flat to an increase of approximately 1%. Through its expense reduction initiatives, the company continues to expect full year consolidated EBITDA to be in a range of $200 million to $250 million.

First quarter net loss from continuing operations was $14.4 million, or $0.20 per share, as compared to a loss from continuing operations of $7.8 million, or $0.27 per share, in the prior year. Excluding charges, first quarter net loss from continuing operations would have been $5.0 million, or $0.07 per share. On a consolidated basis, the company generated first quarter EBITDA of $9.6 million. Excluding charges, consolidated EBITDA would have been $24.7 million, or $3.2 million lower than prior year.

Total sales for the first quarter were $913.9 million, declining 6.6% as compared to the prior year. Retail sales, which include Barnes & Noble stores and BN.com, declined 6.1% to $881.7 million for the quarter. Comparable store sales declined 6.0% for the quarter, softer than the company's expectations, due in large part to lower traffic and the challenging retail environment. NOOK sales, which include digital content, devices and accessories, declined 24.5% to $41.0 million.