News Barnes & Noble's Annual Loss Totals US$154.8 Million
posted on 2013-06-27 23:29 EDT
American bookstore chain Barnes & Noble reported a net loss of US$154.8 million in the 2012 fiscal year ended April 27 on Tuesday. The loss is over double that of the last fiscal year which ended with a net loss of US$65.6 million. Total sales for the year fell 4.1% or US$6.84 billion. Barnes & Noble are looking to cut losses by establishing manufacturing partners for its Nook tablets.
The Nook segment's sales fell 16.8% for the year or a total of US$776.2 million in lost revenue and earnings before interest, taxes, depreciation and amortization (EBITDA) loss of US$475.4 million, almost twice as much as last year. Barnes & Noble attributed US$222 million to inventory changes.
Barnes & Noble CEO William Lynch stated in February that the company is taking “significant actions to begin to right size our cost structure in the Nook segment” and will take a large markdown on Nook devices to expedite sales of existing inventory. Lynch stated that multifunctional devices built by larger companies than Barnes & Noble have greater consumer awareness.