Barnes & Noble 3Q net income falls

AP News
Posted: Feb 22, 2011 9:34 AM
Barnes & Noble 3Q net income falls

Book seller Barnes & Noble's third-quarter revenue rose, but its net income fell 25 despite higher revenue as it continued to invest in its online operations and Nook e-readers, the company said Tuesday.

Barnes & Noble also said it was suspending its quarterly dividend, and it doesn't plan to forecast its fourth-quarter or full-year earnings due to the effect of last week's bankruptcy filing by Borders Group.

The company said its quarterly net income rose to $60.6 million, or $1 per share, from $80.4 million, or $1.38 per share. Analysts expected $1.13 per share, according to FactSet.

Revenue rose 7 percent to $2.33 billion. The company said its sales at stores open at least a year rose 7.3 percent, beating its forecast for a 5 percent to 7 percent increase.

Barnes & Noble's shares fell $1.84, or 9.9 percent, to $16.77 Tuesday morning.

The company blamed bad weather for a 2.2 percent drop in revenue at its college bookstores open at least a year.

Both Barnes & Noble and Borders have been hit hard by rising book sales by discounters and online.