On Nov. 16, Barnes & Noble (NYSE:BKS) released third-quarter earnings for the period ended Oct. 28.

  • The revenue increased by 2.8% to $1.1 billion, thanks to a 4% increase in Barnes & Noble store sales. B. Dalton stores, on the other hand, had a 28% decrease in sales, due to store closures.
  • The EPS dropped to a loss of $0.04, burdened by a $0.03 stock compensation expense.
  • During the third quarter, 11 Barnes & Noble stores were opened and six were closed. Three B. Dalton stores were closed during the quarter.
  • In Motley Fool CAPS, 33 of the 40 community members who have rated Barnes & Noble believe the company will perform well.

(Figures in millions, except per-share data)

Income Statement Highlights

Q3 2006

Q3 2005

Change

Sales

$1,112.0

$1,081.8

2.8%

Net Profit

($2.8)

$0.3

N/A

EPS

($0.04)

$0.00

N/A

Diluted Shares

64.9

71.3

(8.9%)



Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

29.77%

29.58%

0.19

Operating Margin

(0.50%)

(0.03%)

(0.53)

Net Margin

(0.25%)

0.03%

(0.28)

*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$19.9

$23.0

(13.7%)

Accounts Rec.

$129.1

$115.8

11.4%

Inventory

$1,639.0

$1,563.5

4.8%



Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$1,016.6

$1,009.0

0.7%

Long-Term Debt

$34.1

$62.0

(45%)



Learn the ways of the balance sheet.

Cash Flow Highlights

Barnes and Noble must be buried in a book, because it forgot to include a cash flow statement in its press release.

Find out why Fools always follow the money.

Related Companies:

  • Amazon.com (NASDAQ:AMZN)
  • Books-A-Million (NASDAQ:BAMM)
  • Borders (NYSE:BGP)

Related Foolishness:

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