Barnes & Noble lost $12.6 million in the quarter ending October 30th and lowered its full year guidance in a report released on Tuesday. Same store sales (excluding its recently acquired college stores) declined 3.3%, while total sales (also excluding college) were up 1%. The increase was driven by online sales growth but the previous quarter failed to meet expectations.
Book sales in the stores were not given but are estimated to be lackluster based on the fact that Toy & Games sales were up 42% behind expansion of the departments.
The company is focusing heavily on expanding its digital sales, and expects them to be at a $400 million per year run rate in digital by the end of its fiscal year next April. It launched the color Nook this past October.
Thanksgiving weekend sales soared, with comp store increases of 17% for its B&N stores and online sales up over 105%.
The company is projecting 5% to 7% comp store sales increases for the quarter ending late January but that won’t be enough to save its year, for which it lowered guidance to a $.75 to $1.15 loss per share: far worse than the $.50 loss per share the company forecasted just one quarter ago.