Barnes & Noble Inc. (BKS) Misses
Barnes & Noble (BKS, 37.76, -1.24) reported fourth quarter earnings of $1.84 per share, $0.04 worse than consensus of $1.88. As previously announced, revenues rose 7.1% year over year to $1.88 billion. The bookseller also issued in-line guidance for the first quarter and reaffirmed guidance for the full year of 2008.
The company provided a guidance update earlier this month, noting the negative impact of disappointing sales in the fourth quarter were somewhat offset by an increase in gross margin, attributable to fewer bestseller markdowns, lower inventory shrink, and improvements throughout the company's supply chain. BKS said comparable store sales for its Barnes & Noble stores decreased 0.1% for the fourth quarter and 0.3% for the year.
Competitors Borders (BGP) and Amazon.com (AMZN) have also been making adjustments to their strategies as the result of low growth in the space.
While we've noted the slower sales trends in the industry for some time, Barnes & Noble is often cited as a buyout candidate given the company's leading brand, healthy cash flow and very little debt.
Barnes & Noble said it expects first quarter comparable store sales at Barnes & Noble stores to be flat to slightly positive. As previously announced, full-year comparable store sales are also expected to be flat to slightly positive. The company expects first quarter earnings per share of ($0.01) to $0.05 versus the consensus estimate of $0.01. The company reaffirmed its full-year guidance, saying it sees earnings per share of $1.65 to $1.80 versus consensus of $1.74.
--Christine Marie Nielsen, Briefing.com
The company provided a guidance update earlier this month, noting the negative impact of disappointing sales in the fourth quarter were somewhat offset by an increase in gross margin, attributable to fewer bestseller markdowns, lower inventory shrink, and improvements throughout the company's supply chain. BKS said comparable store sales for its Barnes & Noble stores decreased 0.1% for the fourth quarter and 0.3% for the year.
Competitors Borders (BGP) and Amazon.com (AMZN) have also been making adjustments to their strategies as the result of low growth in the space.
While we've noted the slower sales trends in the industry for some time, Barnes & Noble is often cited as a buyout candidate given the company's leading brand, healthy cash flow and very little debt.
Barnes & Noble said it expects first quarter comparable store sales at Barnes & Noble stores to be flat to slightly positive. As previously announced, full-year comparable store sales are also expected to be flat to slightly positive. The company expects first quarter earnings per share of ($0.01) to $0.05 versus the consensus estimate of $0.01. The company reaffirmed its full-year guidance, saying it sees earnings per share of $1.65 to $1.80 versus consensus of $1.74.
--Christine Marie Nielsen, Briefing.com
Labels: Barnes and Noble Inc., BKS
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