Barnes & Noble, Inc. (NYSE: BKS) reported a loss of $14.4 million in the earnings report for the first quarter of their 2017 fiscal year. The company blamed the terrible results on increasing competition from online retailers like Amazon (NASDAQ: AMZN), a bad retail environment, and decisions made by previous leadership.
Current CEO of Barnes & Noble, Leonard Riggio, was appointed CEO this August, and claimed the company hurt itself when the precious leadership has decided to cut employees and inventory.
“The last place you take expenses out is on the sales floor… We also pared the inventory back at the wrong time and in the wrong places. If you want to reduce 10 copies to five, you can replenish. But if you have one or two, that’s a problem.”Riggio explained during a call with investors.
The recent quarterly earnings showed that retail sales, which include brick-and-mortar stores and online, fell 6.1% to $881.7 million. Nook sales dropped 25% to $41 million.