Barnes & Noble Inc. Shares Up On College Unit Spin-Off News

Barnes & Noble, Inc.

shares jumped after the company said it will spin off to shareholders its college bookstore business as a separately traded company. http://www.barnesandnobleinc.com/press_releases/2_26_15_college_announcement.html The New York-based retailer's shares changed hands recently at $25.82, up $1.57. Chief Executive Michael P. Huseby said the spin-off will "allow investors to assess each business more clearly as a stand-alone company." The spin off of Barnes & Noble Education, which operates 714 stores on U.S. college campuses, is expected at the end of August. The new company will be headed by Max J. Roberts, who currently leads Barnes & Noble's college unit. The parent Barnes & Noble company will retain 649 retail stores and its Nook digital businesses. Barnes & Noble said last month that "core" same-store sales in the holiday period increased 1.7 percent and that it sees "continued stabilization of physical book sales." Nook segment sales fell more than 55 percent in the holiday period, to $56 million while total sales for the 9-week holiday period were nearly flat compared with a year earlier, at $1.1 billion. The company, slated to post third-quarter results March 10, has forecast full-year retail same-store sales will decline in the low-single digits, while the measure for its college stores will fall by a similar amount.