Digital surge fails to affect B&N bottom line

Digital surge fails to affect B&N bottom line

Barnes & Noble has announced a full year loss of $74m (£45.6m), despite a surge in digital sales lead by its Nook e-book reader helping it to report an all-time high in yearly sales of $7bn (£4.3bn).

Net income has collapsed at the US retailer, with it earning $36.7m (£22.6m) in its previous financial year. For the year ending 30th April, sales grew 20% to $7bn, fuelled by sales increasing by 50% to $858m (£529.0m) at BN.com. Like for like web sales were up 65% year on year. Store sales were $4.4bn (£2.7bn) for the full year, up 0.7% on a like for like basis. The retailer said this was led by sales of digital products, which offset the fall in trade sales. Sales in its college stores were $1.8bn (£1.1bn) for the full year, down 0.8% on a like for like basis.

For the quarter ending 30th April, Barnes & Noble reported a consolidated net loss of $59m (£36.4m), greater than analysts expected. BN.com sales were up 78% for the fourth quarter to $217m (£133.8m). Store sales were $943m (£581.5m) for the quarter with like for like sales down 2.9%. B&N said it was impacted by liquidation sales taking place at Borders. College sales were up 3.5% to $211m (£130.1m) for the quarter and up 2.8% on a like for like basis.

It said it would not offer guidance for the next financial year as it is still considering a takeover bid from Liberty Media.