Barnes & Noble reports 2Q loss, cuts guidance

Nov 24, 2009
In this May 18, 2009 file photo, a customer reads magazines inside the Barnes and Noble store in Tallahassee, Fla. Barnes & Noble said Tuesday, Nov. 24, 2009, it posted a wider loss in the second quarter because of costs for an acquisition.(AP Photo/Phil Coale, File)

(AP) -- Barnes & Noble on Tuesday posted a larger second-quarter loss than last year and lowered its profit forecast for this quarter in anticipation of weak holiday sales and high costs of launching its electronic book reader, the Nook.

The company's shares fell $1.47, or 6.3 percent, to $22.06 during midday trading. They have traded between $12.64 and $28.78 the past year.

Barnes & Noble launched the Nook, a competitor with Amazon.com's popular Kindle, last month and said the device would begin to ship in late November. Last week, it said the Nook had sold out and orders placed beginning Nov. 20 would be filled Jan. 4 or later.

On Tuesday, Barnes & Noble said orders for the Nook exceeded expectations, and the company said it was ramping up production for the Nook, increasing costs. Barnes & Noble said it plans to invest more in its digital strategy, including hiring more people and investing in technology and in-store marketing support.

The bookseller's second-quarter loss totaled $24 million, or 43 cents per share. That compares with a loss of $16 million, or 34 cents per share, last year. Excluding costs related to purchasing its college bookstore unit from its chairman, the loss totaled 30 cents per share.

Revenue rose 4 percent to $1.16 billion from $1.11 billion last year for the period ended Oct. 31. Best sellers included Dan Brown's "The Lost Symbol," Jeff Kinney's "Dog Days" from the "Diary of a Wimpy Kid" series and Mitch Albom's "Have a Little Faith."

Sales in stores open at least one year, considered a key indicator for retailers because it excludes the effect of opening or closing stores, fell 3.2 percent.

The company, based in New York, now expects to earn 33 cents to 63 cents per share for the year, compared with an earlier forecast of 59 cents to 89 cents per share. Analysts predict a profit of 99 cents per share.

The company expects third-quarter profit of $1.30 to $1.60 per share, while analysts expect a profit of $1.53 per share.

It expects sales in stores open at least a year to fall 1 percent to 3 percent in the third quarter and 2 percent to 4 percent for the year.

Traditional bookstores have had rough going because of increased competition from online sellers and discounters. Consumers have limited discretionary purchases amid tough economic times.

Smaller rival Borders Group said lost $38.5 million, or 64 cents per share, in the third quarter. That compares with a loss of $172.2 million, or $2.85 per share, during the same period a year earlier. Its revenue fell 13 percent to $602.5 million.

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Explore further: Microsoft earnings slip but still beat forecasts (Update)

add to favorites email to friend print save as pdf

Related Stories

EA 1Q loss widens but results surpass expectations

Aug 04, 2009

(AP) -- Lower revenue from packaged video games amid a seasonal slump for the industry gave Electronic Arts Inc. a larger net loss in its fiscal first quarter. But investors cheered as its adjusted results ...

Texas Instruments 2Q profit falls 56 percent

Jul 20, 2009

(AP) -- Chip maker Texas Instruments says its second-quarter earnings fell 56 percent from a year ago, clipped by a weak economy that the company expects will "take some time" to strengthen.

EA posts smaller 4Q loss as costs decline

May 05, 2009

(AP) -- Video game publisher Electronic Arts Inc. posted a smaller net loss Tuesday for its fiscal fourth quarter as it further slashed costs in a quarter that had fewer hit game launches.

Soft PC sales send Microsoft profit down 29 pct

Jul 23, 2009

(AP) -- Microsoft Corp. said Thursday its profit in the last quarter plunged 29 percent because of weak computer sales, ending a fiscal year in which the software maker's revenue fell for the first time since ...

News Corp 4Q loss hits $203M on MySpace writedown

Aug 05, 2009

(AP) -- Global media company News Corp. says its fourth-quarter net loss hit $203 million due to huge impairment charges at MySpace, while its operating profit for the year was slightly worse than it predicted due to the ...

Recommended for you

Google+ boss leaving the company

2 hours ago

The executive credited with bringing the Google+ social network to life is leaving the Internet colossus after playing a key role there for nearly eight years.

Amazon launches grocery service for Prime members

13 hours ago

Amazon is taking aim at grocery stores and discounters like Wal-Mart with a grocery service that lets its Prime loyalty club members fill up to a 45-pound box with groceries and get it shipped for a flat rate of $5.99.

Facebook buys fitness app Moves

17 hours ago

Facebook has bought the fitness app Moves, which helps users monitor daily physical activity and their calorie counts on a smartphone.

User comments : 0

More news stories

Google+ boss leaving the company

The executive credited with bringing the Google+ social network to life is leaving the Internet colossus after playing a key role there for nearly eight years.

Facebook woos journalists with 'FB Newswire'

Facebook launched Thursday FB Newswire, billed as an online trove of real-time information for journalists and newsrooms to mine while reporting on events or crafting stories.

Ocean microbes display remarkable genetic diversity

The smallest, most abundant marine microbe, Prochlorococcus, is a photosynthetic bacteria species essential to the marine ecosystem. An estimated billion billion billion of the single-cell creatures live i ...