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Barnes & Noble lower as sales trends outweigh margin improvement

  • It was race by Barnes & Noble (BKS -1.2%) to cut costs as fast as sales dropped off during Q3.
  • Though the company managed to improve its gross margin rates as the costs of sales and SG&A expenses fell sharply, investors are latching onto the sales trend more than the profitability swing.
  • The drop in Nook revenue (digital and device) wasn't a shocker, but a comp sales falloff of 4.9% at B&N bookstores was a bit wider than analysts forecast.
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