Barnes & Noble, Inc (BKS) saw its loss narrow to $20.41 million, or $0.29 a share for the quarter ended Oct. 29, 2016. In the previous year period, the company reported a loss of $39.23 million, or $0.52 a share. Revenue during the quarter dropped 4.04 percent to $858.55 million from $894.65 million in the previous year period. Gross margin for the quarter contracted 41 basis points over the previous year period to 29.74 percent. Operating margin for the quarter stood at negative 3.41 percent as compared to a negative 6.21 percent for the previous year period.
Operating loss for the quarter was $29.26 million, compared with an operating loss of $55.56 million in the previous year period.
“While we are pleased to have improved our performance due to expense reductions, we did experience sluggish sales, which we believe are directly related to the election cycle,” said Len Riggio, chairman and chief executive officer of Barnes & Noble, Inc. "With the election behind us, we hope and expect sales will improve over the holidays."
Working capital drops significantly
Barnes & Noble, Inc has witnessed a decline in the working capital over the last year. It stood at $62.92 million as at Oct. 29, 2016, down 67.86 percent or $132.83 million from $195.75 million on Oct. 31, 2015. Current ratio was at 1.05 as on Oct. 29, 2016, down from 1.14 on Oct. 31, 2015. Cash conversion cycle (CCC) has decreased to 44 days for the quarter from 88 days for the last year period. Days sales outstanding were almost stable at 9 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 92 days for the quarter compared with 220 days for the previous year period. At the same time, days payable outstanding went up to 145 days for the quarter from 141 for the same period last year.
Debt remains almost stable
Total debt of Barnes & Noble, Inc remained almost stable for the quarter at $191.42 million, when compared with the last year period. Long-term debt of Barnes & Noble remained almost stable for the quarter at $191.42 million, when compared with the last year period. Total debt was 8.48 percent of total assets as on Oct. 29, 2016, compared with 7.84 percent on Oct. 31, 2015. Debt to equity ratio was at 0.36 as on Oct. 29, 2016, up from 0.33 as on Oct. 31, 2015.
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