In another sign of a soft economy at retail, sales at bookstore powerhouse Barnes & Noble dropped 1.6% in its most recent quarterly report, for the quarter ending August 2nd.  Same store sales in Barnes & Noble stores dropped 4.7%.  Even after excluding the impact of the Harry Potter book in the year ago period, same store sales dropped 1.5%.

B&N also revised its guidance for sales for the full year to a decline in the “low single digits.”

Profitability was as expected despite the sales decline; the company made $15.4 million in the quarter.  A lower markdown rate than the company expected was one reason profits held up.  

B&N is down to 73 B. Dalton stores; it closed 10 more in the quarter.  It operates 723 Barnes & Noble stores.