Barnes & Noble reports latest financial results no comments
Barnes & Noble reported its financial results for the quarter ended Jan. 29, 2011 (Q3 fiscal year 2011). While the company was very busy and sold a lot of stuff during the holiday season, profit was lower than some analysts expected as the bookseller (and seller of elves on shelves) continued to spend on the development of its digital strategy.
Total sales at B&N increased 7 percent over the same period last year. Online sales continue to surge — Barnes & Noble.com sales increased 64 percent — while in-store comparable sales increased by 7.3 percent. B&N College Booksellers comparable store sales were down 2.2 percent.
During the third quarter B&N launched the Nook Color ereader; Nook Newsstand digital periodical store; and the Nook Kids children’s Nookbook store. Barnes & Noble also filled more shelf space with toys and games.
“We’re pleased with our financial results this quarter, but just as importantly, the third quarter was another big quarter for the Company from the standpoint of key strategic progress that positions us well for the future,” said William Lynch, chief executive officer of Barnes & Noble, Inc. “In the digital area, our eContent business continues to scale quickly such that we now sell twice as many ebooks as we do physical books at BN.com. NOOK Color, launched in the third quarter, was named the best dedicated eReader by the Associated Press. We’re very encouraged by the sell-through of that break-through device, as well as the newly launched NOOK Newsstand subscription service and NOOK Kids children’s digital library. At retail, our enhanced Educational Toys & Games experience drove 47% comparable growth in the stores, and gives families yet another reason to feel good about shopping at Barnes & Noble.”
B&N declined to issue guidance for the final quarter of fiscal 2011. The reason given was that Borders’ bankruptcy and its liquidation sale may impact sales at B&N. Barnes & Noble also suspended its quarterly dividend of $0.25 in order to preserve capital.
B&N’s shares are down by more than 10 percent today on the news.
