In a statement, CEO Michael Huseby put the blame on a slowdown in sales and the impact of store closures at Barnes & Noble College Booksellers as well as a downturn in sales of wholesale textbooks at its business MBS Textbook Exchange LLS.
“AT BNC [Barnes & Noble College Booksellers], sales were impacted by lower comparable store sales and the impact of previously announced store closings,” Huseby said. “At MBS, wholesale sales were impacted by lower publisher rental penetration than anticipated, as well as lower net sales of traditional wholesale textbooks.”
Huseby reports that the company is attempting to improve “sales execution” as well as manage its expenses and capital spending as it moves to a more digital approach.
In its latest quarter, which ended on October 27, the company which runs bookstores on college campuses, posted earnings of $59.7 million, or $1.25 per share, on sales of $814.8 million.
While its earnings exceeded Wall Street’s average estimate of $1.21 per share, its sales failed to meet analysts’ projection of $842.45 million.
In response, investors sent the company’s shares reeling by as much as 28% to $4.66 in Tuesday’s morning session.
Looking ahead, Barnes & Noble Education expects full-year revenue in the range of $2.2 billion to $2.3 billion.
Contact Ellen Kelleher at [email protected]