Barnes & Noble Education reported sales of $1.87 billion in the fiscal year ended April 29, 2017, an increase of 3.7% over fiscal 2016. Full year net income was $5.4 million, as compared to $0.1 million in the prior year period.
The revenue increase included $34.1 million in sales from MBS, which B&NE acquired late in the fiscal year. Comparable store sales decreased 3.0% for Barnes & Noble College, compared to the prior year period. These sales decreased by 1.8% when excluding community colleges. (With the MBS purchase B&NE is reporting in two segments: BNC, which includes the college stores, and MBS which includes its wholesale and direct sales businesses.)
BNC opened 38 new stores with estimated annual sales of $118 million in fiscal 2017, bringing the total stores operated by BNC to 769 locations as of April 29. MBS sales for the two months following the acquisition were $34.1 million, with approximately $14.1 million for wholesale sales and $20.0 million for direct sales.
For fiscal 2018, the company expects sales at BNC to be relatively flat, while BNC comparable store sales are projected to decline in the low- to mid-single digit percentage point range year over year. In addition, B&NE expects total sales to be in the range of $2.25 billion to $2.35 billion, before intercompany eliminations. Capital expenditures are expected to be approximately $50 million, an increase from fiscal 2017 thanks to new store growth at BNC.