CHICAGO – Barnes & Noble Inc. (BKS) posted a slim third-quarter profit on Thursday, as strong sales of hardcover books helped to offset costs related to a new distribution center.
The company also raised its full-year earnings forecast, citing strong results so far and a lower share count due to share buybacks.
Profit was $327,000, or nil per share, in the third quarter ended October 29, down from $7.6 million, or 10 cents per share, a year earlier.
Barnes & Noble had forecast a loss of 1 cent to 4 cents per share. Analysts, on average, expected a loss of 2 cents per share, according to Reuters Estimates.
The New York-based company said that the quarter included costs of 3 cents per share related to the distribution center.
Sales rose 4 percent to $1.08 billion. Sales at Barnes & Noble stores were also up 4 percent, to $930.5 million, while same-store sales at Barnes & Noble rose 1.5 percent.
Sales at the company's B. Dalton stores fell 21 percent to $28.4 million, due mainly to store closings, with same-store sales at that chain down 1.6 percent. Sales at Barnes & Noble.com rose 8 percent to $99.4 million.
Barnes & Noble expects to post a fourth-quarter profit of $1.72 to $1.76 per share, including about 3 cents per share in costs related to the new distribution center.
For the full year, it now expects to earn $1.99 to $2.03 per share, up from a previous outlook of $1.94 to $1.98.
Analysts, on average, currently call for a profit of $1.68 per share in the fourth quarter and $1.99 per share this year.
The company said its full-year forecast includes charges of 2 cents per share related to financing and 6 cents in legal settlement costs, both of which occurred in the second quarter. It also includes 8 cents per share in costs related to the new distribution center.
The company expects further costs related to the new facility through 2006 as its transition program is completed.
Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox