Barnes & Noble posted their quarterly earning report this morning, and there's both good news and bad news. Total sales dropped slightly, from $1.9 billion to $1.89 billion, compared to last year. B&N posted a net loss of $6.6 million for the quarter, a slight improvement over the loss of $12.6 million last year. Unfortunately, this is below Wall Street expectations.
Sales in B&N's bricks-and-mortar stores fell 1% last quarter, to $918 million, and sales at established stores dropped just over half a percent. The company noted that "physical book sales declined, offset by increases in Nook products and were positively affected by the liquidation of the remaining Borders stores."
Barnes & Noble's digital division, B&N.com, saw sales jump 17%, to $206 million. This is largely attributed to an increase in sales of Nook ereaders and ebooks. Sales also decreased by 4% at B&N College, to $768 million, mainly because of the stores have shifted from selling new and used textbooks to textbook rentals. The latter have a lower price but a higher profit margin.
So it looks like B&N is doing better than last year, but they're still losing money. Lucky for them they have that $204 million capital investment from Liberty Media. That should be enough to cover them for the next couple years, or until they turn profitable again.
I'm looking forward to the report for this quarter. B&n launched the Nook Tablet and dropped the price of the Nook Touch and Nook Color. That should provide another boost in sales.