Barnes & Noble Reports Loss, Expects Holiday Loss24 Nov, 2009 By: Billy Gil
Barnes & Noble expanded its second-quarter (ended Oct. 31) loss to $24 million, up from a loss of $16 million in the comparable period a year ago.
Guidance was changed to foresee a 1% to 3% decline in comparable-store sales in the period ended Jan. 30, 2010, citing a tough holiday season. Its full-year guidance remains at a comparable-store sales decline of 2% to 4%.
Revenue for the bookseller rose 4% to $1.16 billion from $1.11 billion the same quarter last year. Sales in stores open at least a year fell 3.2% from the period a year ago.
“It’s clear to us that the retail bookselling marketplace is consolidating,” said Barnes & Noble CEO Steve Riggio. “While our comparable-store sales continue to be under pressure due to a decrease in traffic in shopping centers across America, we still continue to gain market share in the brick-and-mortar bookselling business.”
Riggio said the company will sell more content digitally — including new and archived newspapers, periodicals and journals — through a la carte and subscription forms, to deliver through its Nook eBook reader, PCs and smart phones (Barnes & Noble has an app for the iPhone and iPod Touch, for example). He didn’t say whether extended digital content would include video content as well.