Buoyed by a "strong hardcover release schedule" last month, sales at
Barnes & Noble rose 4% to $1.08 billion in the third quarter ended
October 29, and net earnings were $327,000 compared to $7.57 million a
year ago. The company's earnings drop reflected costs of $2 million for
the company's new distribution center in New Jersey. Analysts had
expected a slight loss.
B&N increased its estimates of earnings per share for the full fiscal year by five cents, which reflects both an increase in net earnings of $1 million and the reduction in the number of shares outstanding following the company's share repurchasing program.
Yesterday Wall Street reacted favorably to the results and the estimates increase. On a day the Dow Jones Industrials rose 0.4%, B&N stock closed at $39.98, up 4%.
CEO Steve Riggio commented: "Third quarter sales met expectations, benefiting from a strong hardcover release schedule in October. If our sales trend continues, we are optimistic that the company will be able to deliver its fourth quarter results as planned."
The Divisions
Sales at B&N stores rose 4% to $930.5 million. Sales at B&N stores open at least a year rose 1.5%. The company estimated that hurricanes during the quarter negatively impacted comp-store sales 0.5%. During the quarter, the company opened 13 B&N stores and closed three. It currently operates 683 B&N stores.
Sales at B. Dalton Bookseller dropped 21% to $28.4 million, mainly because of store closings. Comp-store Dalton sales dropped 1.6%. B&N closed five Daltons during the quarter and now has 141.
Sales at B&N.com rose 8% to $99.4 million.
Also during the quarter, B&N paid its first dividend, of 15 cents a share. It also bought back 2.8 million shares of its stock for $105 million; for the year-to-date, it has bought 7.3 million shares for $269 million.
B&N increased its estimates of earnings per share for the full fiscal year by five cents, which reflects both an increase in net earnings of $1 million and the reduction in the number of shares outstanding following the company's share repurchasing program.
Yesterday Wall Street reacted favorably to the results and the estimates increase. On a day the Dow Jones Industrials rose 0.4%, B&N stock closed at $39.98, up 4%.
CEO Steve Riggio commented: "Third quarter sales met expectations, benefiting from a strong hardcover release schedule in October. If our sales trend continues, we are optimistic that the company will be able to deliver its fourth quarter results as planned."
The Divisions
Sales at B&N stores rose 4% to $930.5 million. Sales at B&N stores open at least a year rose 1.5%. The company estimated that hurricanes during the quarter negatively impacted comp-store sales 0.5%. During the quarter, the company opened 13 B&N stores and closed three. It currently operates 683 B&N stores.
Sales at B. Dalton Bookseller dropped 21% to $28.4 million, mainly because of store closings. Comp-store Dalton sales dropped 1.6%. B&N closed five Daltons during the quarter and now has 141.
Sales at B&N.com rose 8% to $99.4 million.
Also during the quarter, B&N paid its first dividend, of 15 cents a share. It also bought back 2.8 million shares of its stock for $105 million; for the year-to-date, it has bought 7.3 million shares for $269 million.