Barnes & Noble’s overall sales declined 2.7% in the quarter ended November 1, but in its bookstore and online segment, after the decline in Nook sales is excluded, it eked out a .5% same store sales gain.  With the Nook decline, sales declined 3.6% in the segment.  The company is calling for sales declines “in the low single digits” for the full year. 

Barnes & Noble earned $12 million, vs. earnings of $13 million in the year-ago period.  The pain from the Nook meant that both revenue and profits for the quarter were below expectations; the stock dropped 5.4% on the news.  The company beat expectation in its last quarter (see "Barnes & Noble Slows the Bleeding"), so it’s hard to say there’s a real trend.

The company also announced that it is buying out the Microsoft interest in the troubled Nook division for $125 million (half in stock) and a shot at a share of any proceeds if the division is sold in the next three years.  Microsoft paid $300 million for that share just a  few years ago  (see "Microsoft Investing $300 Million in Barnes & Noble Subsidiary").  Pearson also owns a small share (see "Pearson Invests in Nook"); it has the right to take the same deal as Microsoft.  Removing other owners gives Barnes & Noble more flexibility to do transactions with the Nook business, including possibly spinning it off or selling it.