Barnes & Noble lost $12.6 million in the quarter ending October 30th and lowered its full year guidance in the report released on Tuesday. Same store sales (excluding its recently acquired college stores) declined 3.3%, while total sales (also excluding college) were up 1%. The increase was driven by online sales growth. The previous quarter was also worse than expected (see “B&N Quarter Weaker than Expected”).
Book sales in the stores were not broken out but couldn’t have been good, because Toys & Games were up 42% behind expansion of the departments.
The company is focusing heavily on expanding its digital sales, and expects them to be at a $400 million per year run rate in digital by the end of its fiscal year next April. It launched the color Nook in October (see “B&N Introduces Color Nook”).
Thanksgiving weekend sales rocked, with comp store increases of 17% for its B&N stores and online sales up over 105%.
The company is projecting 5% to 7% comp store sales increases for the quarter ending late January but that won’t be enough to save its year, for which it lowered guidance to a $.75 to $1.15 loss per share. That’s quite a bit worse than the $.50 loss per share the company forecast just one quarter ago.