LONDON, UK / ACCESSWIRE / September 28, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Barnes & Noble, Inc. (NYSE: BKS), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=BKS, following the Company's reporting of its first quarter fiscal 2018 financial results on September 07, 2017. The bookseller's sales and net loss lagged behind market expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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For its fiscal 2018 first quarter ended July 29, 2017, Barnes & Noble's total sales were $853.32 million, declining 6.6% compared to total sales of $913.88 million in Q1 FY17. Total sales came in below analysts' expectations of $873.0 million.
During Q1 FY18 Barnes & Noble's comparable store sales decreased 4.9%, as declines in non-book categories outpaced improved book trends during the reported quarter. The Company's NOOK sales decreased 28% on lower content volume as well as lower average device selling prices. Both digital content and online sales benefited in the prior year from the eBook settlement.
For Q1 FY18, Barnes & Noble's retail sales decreased 5.9% to $830.04 million compared to $881.71 million in Q1 FY17. The Company's online sales decreased $7 million during the reported quarter as lower promotional activity drove improved margins.
Barnes & Noble's consolidated gross margins decreased $24 million primarily due to the lower sales volume. From a rate perspective, the Company's retail margins declined 50 basis points primarily on occupancy deleverage. The company cut its year-over-year expenses by $26 million during the quarter. The reductions were due to the lower sales volume, targeted cost savings and comparisons to prior year nonrecurring charges. From a rate perspective, retail expenses slightly increased from sales deleverage, while the consolidated rate declined 90 basis points on lower NOOK expenses.
Barnes & Noble's consolidated operating loss was $15.21 million in Q1 FY18, improving $6.2 million versus operating loss of $21.39 million in Q1 FY17. The Company's Retail segment incurred an operating loss of $12.5 million, while NOOK incurred an operating loss of $2.7 million.
Barnes & Noble's consolidated earnings before interest, tax, depreciation, and amortization (EBITDA) was $11.2 million in Q1 FY18 compared to $9.6 million in Q1 FY17. The Company's NOOK unit generated EBITDA of $0.6 million, an $8.6 million improvement over the prior year on expense reductions. Barnes & Noble's Retail EBITDA was $10.6 million, decreasing $7.0 million on a y-o-y basis, primarily due to the comparable store sales decline, somewhat mitigated by expense reductions.
Barnes & Noble's consolidated net loss improved to $10.8 million, or $0.15 per share, in Q1 FY18 compared to a loss of $14.4 million, or $0.20 per share, in Q1 FY17. The Company's loss was wider than Wall Street's estimates for a loss of $0.12 per share.
Barnes & Noble's ended Q1 FY18 with $84 million of borrowings under its $750 million credit facility compared to $65 million in Q1 FY17. Over the past 12 months, the Company has returned $57 million in cash to its shareholders through dividends and share repurchases and $151 million over the past two years. Barnes & Noble's capital expenditures were $21 million for the reported quarter, consistent with prior year's levels. During Q1 FY18, Barnes & Noble did not open any stores but did close one store.
For the fiscal year 2018, Barnes & Noble is expecting comparable bookstore sales to decline in the low single digits and full year consolidated EBITDA to be approximately $180 million. The Company is targeting $35 million of cost reductions in FY18, excluding the impact of the prior year nonrecurring charges.
On Wednesday, September 27, 2017, the stock closed the trading session at $7.60, slipping 1.30% from its previous closing price of $7.70. A total volume of 775.82 thousand shares have exchanged hands. Barnes & Noble's stock price advanced 1.33% in the last three months. The stock is trading at a PE ratio of 21.53 and has a dividend yield of 7.89%. At Wednesday's closing price, the stock's net capitalization stands at $532.91 million.
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