Barnes & Noble reported a decrease in sales and improved profitability in its fiscal Q3, which ended January 31, 2015.  The sales decline, $35 million for the quarter, was all due to declining Nook division sales, which were down nearly $80 million for the period, with a 62.8% decline in device and accessory sales and a 29% decline in digital content sales.  What B&N calls its "core" comparable bookstore sales, which exclude Nook sales, were up 1.7% for the quarter, which is what the book chain reported for the holidays (see "Book, Toy, Entertainment Retailers Report Holiday Results").

The bookstore sales increase was attributed to both improved books sales and higher sales in educational toys and games.

Sales in its college stores (which B&N plans to spin off later this year, see "B&N Spinning Off College Stores") were up 7.2%, due to better than expected comps and more schools.

Earnings were $72 million for the quarter, up from $63 million last year.  Nook EBITDA losses were down $32 million, so the rest of the operations declined in profitability, which investors did not look on kindly; share prices declined over 10% for the day.