The two largest North American graphic novel retailers, Barnes & Noble and Borders Group, reported their third quarter results this week.  Barnes & Noble posted a small profit that was better than expectations; Borders posted a larger loss than a year ago, within its own expectations. 

 

Barnes & Noble earned $327,000 on sales of $1.08 billion.  Sales were up 5% at Barnes & Noble stores and at the company.  Same store sales were up 1.5%.  B. Dalton sales were down 21%, due mainly to store closings.  Online sales through Barnes & Noble .com were up 8% to $99.4 million.  Investment in a new distribution center in New Jersey, which replaces five smaller facilities, depressed earnings, as did declining sales of music.  The company raised its Q4 and full year earnings forecast.

 

Borders Group lost $14.1 million, vs. $1.1 million in the same period a year ago.  The loss was at the high end of the company's recently lowered expectations.  Sales were up slightly to $840.9 million, from $838.6 million a year ago.  Book sales were up 3%, but music sales were down 15%.  Same store sales were down .2% at Borders stores and 5.2% at Waldenbooks.  Waldenbooks sales were hurt by lower mall traffic.  Earnings were also depressed by spending on store remodeling and weak sales in Britain.