Recent record shows though the famous bookstore Barnes & Noble has incurred a loss it could at least narrow down the margin a little which was beyond expectation. The whole incident of managing to save the company from a greater loss has given a positive thrust towards the company’s share in the market.
Michael Huseby, the CEO of Barnes & Noble, said in a recent statement that they have somehow continued to improve their performance in financial parameter, and at the same time concentrated on executing effective strategic initiatives. This included taking steps towards the proposed separation of the Barnes & Noble Retail and the Nook Media businesses.
Huseby further mentioned that the retail section’s core comparable sale is however getting some definite advantages from improving physical book industry trends, supported by additional merchandising initiatives including store promotions.
While discussing this point he also provided the previous figures of company earning indicating 0.4% decline in core bookstore sales. But this obviously presents a track record excluding Nook product sales. When the Nook’s results are also taken into consideration, Barnes & Noble’s performance record touched a lower limit of 5.1% in the quarter.
But there is a silver line in this negative picture. Although Nook segment sales showcased a declining curve from 54.3% to $70 million, its EBITDA loss got a little positive swing by $50 million which made it a $5 million for the quarter.
No doubt the company highlighted their internal strategy of initiating the progress towards separating Nook Media from Barnes & Noble Retail, but at the same time it also played the game cautiously which keeps the things a bit hazy regarding the exact time of such executions.
In fact they are still continuing to showcase a situation where they are still carrying out some discussions about restructuring agreements. As a result it is not being possible to assess when the Nook spin-off will take place. It is also likely that it may become as late as first quarter of 2015.