Barnes & Noble, Inc. (NYSE:BKS), the largest retail bookseller in the United States, shares went down 21% Friday morning after a disappointing earnings report.
The company reported on Thursday that sales decreased 4.5 percent to $894.7 million, a net loss of $39.2 million, or 52 cents per share, in the quarter, compared with a profit of $12.3 million, or 12 cents per share, a year earlier.
Barnes & Noble completed the spinoff of its college bookstore group into a new publicly traded company, Barnes & Noble Education Inc. in August. Even as the company focuses more on its core business it’s still hard for them to compete with other online retails like Amazon.com, Inc (NASDAQ:AMZN) The bookstore chain said it expects comparable-store sales to be flat this year, with the Nook weighing on results.
Chief Executive Officer Ron Boire, who just took over in September, aims to draw more people to stores with non-book merchandise, such as toys and activities. The retailer also has worked to stem losses from the Nook unit by lessening investment and teaming up with Samsung Electronics Co. to produce the devices. Nook sales fell 32 percent to $43.5 million last quarter, a sign of the platform’s challenges in competing with Amazon’s Kindle.
Barnes & Noble now expects to close 10 stores in fiscal 2016 instead of the 13 it had previously planned, he said. Barnes & Noble, currently, operates 647 stores nationwide.