Bookstore chain Barnes & Noble Inc. (NYSE: BKS ) on Tuesday, Nov. 26, reported a turnaround to profit in the second quarter as lower sales were offset by a decline in expenses and improved margins. However, sales for the quarter missed analysts' expectations and were hurt by lagging Nook sales.
The New York-based company reported net income of $8.61 million or $0.15 per share, compared to net loss of $3.89 million or $0.07 per share in the year-ago period.
Sales for the quarter declined 8 percent to $1.73 billion from $1.88 billion a year ago, missing Wall Street estimates of $1.77 billion.
The company was hurt by sliding sales in its Nook e-reader division, with revenue from the digital-book collections plummeting 32 percent to $108.7 million, compared with a loss of $51.4 million a year earlier. Nook sales suffered due to slashed prices and increased competition from tablets, Amazon's Kindle collection and the iPad Mini.
On the bright side, gross margin improved to 26.6 percent from 25.6 percent largely due to a 9.3 percent drop in costs of sales and occupancy and a 7 percent decline in selling and administrative costs.
Shares fell $1.03, or 6.3 percent, to $15.40 during midday trading Tuesday. The stock is up 9 percent since the beginning of the year.
For more see:
This Wall Street Journal article
Barnes & Noble Restates Years' Worth Of Bookkeeping
Is B&N CEO's Resignation Further Proof Of An Imminent Sale?
Barnes & Noble Abandoning Its Color Nooks
NRF Holiday Sales Projections Rise; Shutdown Fears Loom
Retailers Need to Get a Head Start on Slower Holidays