News

Barnes & Noble swings to Q3 profit, plans new Nook

BY Dan Berthiaume

New York – Barnes & Noble swung from a net loss in the third quarter of fiscal 2013 to a net profit in the third quarter of fiscal 2014, even as revenues dropped.

Net earnings in the third quarter totaled $63.2 million, compared to a $3.7 million net loss in the same period a year earlier. Total revenues dropped 10.3% to $1.99 billion from $2.22 billion. A 50% revenue drop in the company’s Nook segment helped drive the overall decline, although all the company’s retail and college verticals also reported revenue drops.

Despite the decline in Nook revenue, Barnes & Noble said it is negotiating with several hardware partners and plans to release a new color Nook device in early fiscal 2015.

Michael P. Huseby, CEO of Barnes & Noble, said good titles, textbook rentals and a clearing out of Nook inventory helped produce a profit.

“During the third quarter, the company significantly improved its balance sheet and bottom line, while making real progress on our strategic priorities,” said Huseby. “Retail’s core same-store store sales benefited from a strong title line-up, strong execution and an effective advertising campaign. College entered into the spring back-to-school rush and saw continued growth in its higher-margin textbook rental business. Nook losses narrowed significantly as we achieved our objective of selling through much of our pre-holiday device inventory, while managing promotions to optimize sales.”

The company reaffirmed its previously issued full-year guidance, in which it expects retail same-store sales to decline in the high single digits, core retail same-bookstore sales to decline in the low- to mid-single digits and college same-store sales to decline in the low single digits.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Are you hiring seasonal employees this year?

View Results

Loading ... Loading ...
News

Abercrombie’s Q4 profit plunges 58% but still tops Street; accelerates buyback

BY Dan Berthiaume

New Albany, Ohio – Abercrombie & Fitch Co.’s fourth-quarter net income plunged 58%, less than Wall Street expected, amid several one-time charges, including costs tied to the closure of its Gilly Hicks’ stores. The company’s board also approved a $150 million accelerated share repurchase plan, to be executed during the first quarter.

For the quarter ended Feb 1, Abercrombie’s income fell to $66.1 million from $157.2 in the year-ago period. For the full year, income declined 77% to $54.6 million from $237 million last year.

Net sales dropped 12% to $1.3 billion during the quarter. Same-store sales, including direct-to-consumer sales, fell 8%. By brand, same-store sales fell 6% for Abercrombie & Fitch, were down 8% for Abercrombie Kids and down10% for Hollister Co.

For the full fiscal year, sales declined 9% to $4.11 billion.

The retailer said it anticipates opening 16 full-price international stores throughout fiscal 2014, including an Abercrombie & Fitch flagship store in Shanghai in April 2014 and a small number of namesake mall-based stores.

In addition, the company plans to open a small number of international and U.S. outlet-based stores during the fiscal year. The company also expects to close approximately 60 to 70 stores in the U.S. during the fiscal year through natural lease expirations.

Abercrombie & Fitch cited the closure of 24 Gilly Hicks stores in the fourth quarter, as well as other asset impairment charges and charges related to its profit improvement initiative, as significantly reducing its reported net income.

“2013 was a challenging year, with sales and earnings falling well short of the objectives we set at the beginning of the year,” said Mike Jeffries, CEO of Abercrombie & Fitch. “After three years of positive growth in our combined U.S. chain stores plus direct-to-consumer comparable sales metric, that metric turned negative in 2013 against the backdrop of a challenging retail environment, particularly in the teen space. It is important that we return to positive growth, particularly in our core U.S. business, and the steps we are taking as we execute against our long-range strategic plan should put us in a position to achieve this goal.”

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Are you hiring seasonal employees this year?

View Results

Loading ... Loading ...
News

Big 5 Sporting Goods has competitive Q4, fiscal 2014

BY Marianne Wilson

El Segundo, Calif. – Big 5 Sporting Goods Corp. released mostly positive financial results for the fourth quarter and fiscal year 2013. During the fourth quarter, net income rose 30% to $5.2 million from $4 million compared to the same period in the prior year.

Net sales increased about 2% to $248 million from $243.6 million, while same-store sales declined 0.5%. During the fiscal year, net income almost doubled, rising 87% to $27.9 million from $14.9 million. Net sales improved 6% to $993.3 million from $940.5 million and same-store sales rose 3.9%.

Steven G. Miller, chairman, president and CEO of Big 5, said a slowdown in firearms and ammunition sales as well as severe winter weather dampened fourth quarter same-store sales.

"We are pleased to have delivered another quarter of earnings growth in a very challenging retail environment," said Miller. "As we previously reported, our fourth quarter sales comparisons were impacted by cycling against the surge of firearm and ammunition sales during the prior year, as well as the lack of favorable winter weather across our western markets. We were able to offset most of the sales softness caused by these factors with positive performance in a number of our other product categories, which we believe reflects the favorable customer response to our merchandising and marketing strategies.”

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Are you hiring seasonal employees this year?

View Results

Loading ... Loading ...