Barnes & Noble is not dead yet
Net income at the world's largest bookseller fell to $15.4 million, or 27 cents a share, from $18.05 million, or 26 cents, a year earlier. Sales dropped 1.6% to $1.2 billion from a year earlier when J.K. Rowling's Harry Potter and the Deathly Hallows was flying off the shelves. Barnes & Noble store sales decreased 1.6% to $1.1 billion, with comparable store sales decreasing 4.7%. Barnes & Noble.com sales rose 3.6% to $99.8 million.
Excluding a one-time tax benefit, profit was 15 cents, five cents ahead of the 10-cent average estimate of analysts surveyed by Bloomberg. It was also higher than the company's guidance of 8 cents to 13 cents a share. Gross margins were stronger because of the greater utilization rates of its distribution centers and a lower markdown rate. Selling and administrative expenses fell in the quarter.
Of course, Barnes & Noble will continue to struggle as consumers cut back on their discretionary purchases. Moreover, Amazon.com Inc. (NASDAQ: AMZN) is not going anywhere soon. The company expects to lose 10 to 15 cents in the third quarter. It also lowered its full-year comparable same store sales guidance from "slightly negative to a decrease in the low single digits." The company is maintaining its full-year earnings guidance of $1.70 to $1.90.
At this rate, the company may be able to ride out the economic downturn until it can find a private equity buyer which is about the only hope for shareholders.
Related Posts
- Late summer bestsellers won't be enough to save the bookstores (18 days ago - 0 Comments)
- Borders attempts to stand out from the crowd by being exactly like it (24 days ago - 1 Comments)
- Why do we do business with Russia? (16 days ago - 6 Comments)
- Foot Locker (FL) reports healthy Q2 earnings (Today - 1 Comments)
- Lowe's shares should be avoided (4 days ago - 0 Comments)
Add your comments