UPDATE: Barnes & Noble Posts Narrower-Than-Expected FQ1 Loss

Barnes & Noble

reported a narrower-than-expected loss for the fiscal first quarter. However, the company's sales missed expectations. The New York-based company posted a quarterly loss of $28.4 million, or $0.56 per share, versus a year-ago loss of $87 million, or $1.56 per share. The year-ago results included $41 million, or $0.70 per share in valuation allowance against certain deferred tax assets. Its sales dropped 7% to $1.24 billion. However, analysts were expecting a loss of $0.63 per share on revenue of $1.26 billion. Revenue at the Retail segment dropped 5.3% to $955 million in the quarter, while revenue at the College segment came in flat at $226 million. Revenue at the NOOK segment declined 54.3% to $70 million in the quarter. Gross margin rose to 31% from 27.7%, while input costs slipped 11% in the quarter. Its consolidated earnings EBITDA rose to $30 million, versus an EBITDA loss of $9 million. “We continued to improve our financial performance, while further executing on our strategic initiatives, including work on the proposed separation of the Barnes & Noble Retail and NOOK Media businesses,” said Michael P. Huseby, Chief Executive Officer of Barnes & Noble. For the full fiscal year, Barnes & Noble still projects same-store sales to drop in the low-single digits. Barnes & Noble shares gained 1.28% to $23.70 in pre-market trading.