Barnes and Noble sales plunged further after cancelled bid
Barnes and Noble reported a brutal quarterly loss and had its shares slid further when its Chairman, Leonard Riggio, cancelled a bid to take over the company's bookstores and chain.
The chain attributed the company's loss in profits to its venture into Nook devices and e-books. The Barnes and Noble Nook is a brand originally developed by the book retailer. Based on the Android format, the Nook device was released in November 2009.
Nook ebooks and devices generated only USD153 million, a 20% drop. Nook bookstores opened longer than 15 months experienced revenue loss of 9.1%. Shares of the bookstore chain dropped 14% to USD 14.35 in Tuesday's premarket trading with results showing slightly ahead of the expectations forecasted by Wall Street.
Company chairman, founder and major shareholder, Leonard Riggio said he has postponed his offer for the chain of stores. Riggio clarified that he might still pursue buying it in the near future.
B&N reported a loss of USD 87 million or USD 1.56 per share for the fiscal first quarter that ended July 27. These figures were worse in comparison with last year's USD 39.8 million or USD 0.76 per share. However, revenues fell 8.5% to USD 1.33 billion, which turned out slight better what analysts anticipated.