Barnes & Noble, Inc. (NYSE: BKS), on the verge of going private, posted lackluster fourth quarter and year-end financial results on Thursday. The Company said it lost USD 0.26 per share as revenue declined 3.9% to USD 755 Million for the quarter ended April 27. For the full year, Barnes & Noble earned USD 0.05 per share on USD 3.6 Billion compared to a loss of USD 1.73 per share on USD 3.7 Billion a year earlier. Comparable store sales fell 2.3% for the fourth quarter and 1.9% for the full year.
Barnes & Noble has struggled in recent years as it battles e-commerce giant, Amazon.com, Inc. (NASDAQ: AMZN) in the book-selling business. Both companies launched e-readers just two years apart. Amazon released the Kindle in 2007, while Barnes & Noble introduced the NOOK Book in 2009. The NOOK however, failed to compete.
In the hopes of turning its business around, Barnes & Noble announced earlier this month that it will be going private in a USD 683 Million all-cash deal with Elliot Management. “We are pleased to have reached this agreement with Elliott, the owner of Waterstones, a bookseller I have admired over the years,” said Leonard Riggio, Founder and Chairman of Barnes & Noble.
“In view of the success they have had in the bookselling marketplace, I believe they are uniquely suited to improve and grow our company for many years ahead. I am also confident that James Daunt has the leadership ability and experience necessary to lead this great organization. I will do everything I can to help him make the transition smooth.” The deal is expected to close in the third quarter of 2019.
Shares of Barnes & Noble have lost 6% year-to-date.