Barnes & Noble Education Reports Earnings Miss, Job Cuts And Acquisition

Barnes & Noble Education Inc. reported a third-quarter loss of $3.6 million, or 7 cents per share, versus a profit of $8.7 million, or 9 cents per share, for the same period last year. Sales for the quarter were $518.4 million, down from $521.6 million last year. Same-store sales decreased 4.1%. The Spring Rush period, however, extended beyond the quarter, with same-store sales decreasing 2.9% when factoring in three additional weeks in Feburary. The company sees same-store sales decreasing 2% in fiscal 2016. "Course material sales for the Spring Rush period were adversely impacted by decreased enrollments in two year community colleges," said Max Roberts, chief executive of Barnes & Noble Education. The company has closed the offices for its Yuzu e-textbook platform, and eliminated staff in California and Washington in order to cut digital expenditures, taking a $12 million non-cash impairment charge. The company expects to incur restructuring charges of $7 million to $8 million in the fourth quarter, about $4 million non-cash, and $1 million to $2 million in the fiscal first quarter of 2017. Barnes & Noble Education shares are down 0.1% in premarket trading and up 14.5% for the year so far. The S&P 500 is down 2.1% for the year-to-date.