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Barnes & Noble drops after soft quarter

1 March 2018

From Seeking Alpha:

Barnes & Noble trades below its 52-week low after FQ3 results limp in.

Comparable store sales fell 5.8% for the quarter due to low traffic. Comparable store sales trends did improve in January, only falling off 3.5%.

The company recorded an EBITDA loss of $6.63M during the quarter. This quarter it was the retail business posting a loss and the Nook business poking out an EBITDA gain of $1.62M.

Link to the rest at Seeking Alpha


11 Comments to “Barnes & Noble drops after soft quarter”

  1. Is anybody surprised?

  2. Stop the $0.60 dividend which is 12.77% on a $4.50 per share price.

    That will make them instantly profitable.

    For comparison the S&P 500 dividend is yielding 1.69%. 12.77% is the sign of a distressed company.

    • Incentivising their chairman and largest shareholder, Leonard Riggio, not to sell his shares.

      I wonder if Riggio understands that his shares will only continue to decline in value until the inevitable bankruptcy and is using dividends to pull money out of BN.

      • I’m sure he does.

        • It a strategy for driving straight to liquidation insteadof reorganization.
          Maybe he’s a closet objectivist and plans on “leaving it as he found it”.

          • It [is] a strategy for driving straight to liquidation insteadof reorganization.

            Nah, B&N will do a Chapter 18; that is, a Chapter 11 reorg that rolls into a Chapter 7 liquidation.

      • Bankruptcy judges have been known to claw back payouts for onerous bonuses and debt/rent.

    • If the stock is declining AND it’s not paying any dividend, it’s hard to use it as executive compensation.

  3. Terrence OBrien

    A quick look at the balance sheet shows a steadily shrinking company.

    In terms of dividends, over three years ending 4/17, dividends have been $110 million, while stockholder equity has fallen by $500 million.

    4/18 end will be interesting.

    • “4/18 end will be interesting.”

      With the sound of a ‘plop’ as it disappears under the waves.

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