News
Barnes & Noble Turns a Profit During 2013 Holiday Season
posted on by Lynzee Loveridge
Barnes & Noble earned US$63.2 million during the holiday season quarter. The profit is an upswing for the book chain, which previously reported an annual net loss of US$154.8 million in the 2012 fiscal year and a US$3.7 million loss during the 2012 holiday quarter.
The company cut back on its Nook segment, taking a loss of US$61.8 million this quarter compared to last year's US$190.4 million. Former Barnes & Noble CEO William Lynch stated last February that the company is taking “significant actions to begin to right size our cost structure in the Nook segment” and will take a large markdown on Nook devices to expedite sales of existing inventory. Sales for the device dropped 50.4 percent and the company let go 190 employees in its Nook segment.
Barnes & Noble's bookstore and online retail segment were down .5 percent, while toy and game sales were up 12 percent.
CEO Michael Huseby commented on the recent buyout offer by G Asset Management earlier this month. Huseby stated the company is not taking the offer seriously. "G Asset Management has one employee, extremely limited financial means and as set forth in his letter, he has no debt or equity financing to support his proposal," Huseby said, "And accordingly, we do not consider it to be a proposal worthy of further discussion or action by us."
Source: ICv2
