Barnes & Noble narrows loss, misses Street
New York – Barnes & Noble Inc. reported Tuesday that it narrowed its loss to $12.6 million in its fiscal second quarter, compared with a loss of $24 million in the year-ago period. Results missed Wall Street expectations, and the book seller has issued a weak outlook for the third quarter and the full year.
Revenue surged 64% to $1.91 billion, attributed to the company’s acquisition of its college book unit. Without the acquisition, sales rose 1%.
Same-store sales fell 3.3%.
Barnes & Noble said it will continue to invest in its new color Nook electronic e-reader and its digital catalog.
The company recently fought and won a proxy battle against activist investor billionaire Ron Burkle to install a poison pill plan limiting investors to a 20% stake. Barnes & Noble put itself up for sale during the process, and the company said it is meeting with “both strategic and financial institutions,” but said the review might not result in a sale or any other deal.
Barnes & Noble currently operates 717 bookstores in 50 states, as well as 637 college bookstores through its Barnes & Noble College Booksellers subsidiary.
Report: Wal-Mart in Japan insider trading probe
Tokyo – A report released Tuesday said that Japanese prosecutors will launch an investigation into possible insider trading involving shares of Wal-Mart’s Japanese subsidiary Seiyu.
According to Reuters, which cited the Nikkei business daily website, the trading is suspected to have occurred when Wal-Mart turned Seiyu into a fully owned unit in 2007.
In early November, Japan’s Securities and Exchange Surveillance Commission began an investigation into possible insider trading. Wal-Mart has said it would cooperate with authorities.
Kohl’s announces executive promotions
Menomonee Falls, Wis. – Kohl’s Corp. announced Tuesday that it is promoting four of its executives as part of an ongoing succession planning process.
Don Brennan has been promoted from senior EVP to chief merchandising officer. John Worthington was promoted from senior executive VP to chief administrative officer. Peggy Eskenasi was promoted from executive VP of product development to senior EVP. And Wes McDonald was promoted from EVP and CFO to senior executive VP and CFO.
All the promotions are effective Dec. 1.