Barnes & Noble's
If you consult our Fool by Numbers for the quarter, you'll see Barnes & Noble reported a loss of $2.8 million, or $0.04 per share, including $0.03 per share in stock option expense. Sales increased 3% to $1.11 billion. Same-store sales rose 2%, with B. Dalton being a trouble spot due to store closures.
Several bestsellers helped sales, including books by John Grisham and Barack Obama. Mitch Albom's book, For One More Day, was another hit -- you might recognize that title, since Starbucks
The major theme in Barnes & Noble's conference call was its decision to further lower prices on adult hardcover books in its membership program. "We believe that giving . some of the margin gains that we have realized back to our customers is a good long-term strategy," CEO Steve Riggio said.
Indeed. It's not lost on anyone that this is a hyper-competitive business these days. There's Borders
The holiday season is fast approaching (in fact, given retailers' early push this year, you could argue that it's already begun), and that's a great time for a company like Barnes & Noble; people are hitting the streets in droves looking for gifts for their families and friends.
However, Barnes & Noble's new emphasis on price-busting bears watching as it tries to drive higher growth in such a competitive space -- investors are going to want to see how well it does achieving higher sales volume and how that impacts profitability. It seems to me this is a good time to grab a book and wait awhile for Barnes & Noble.
For more, turn to the following Foolish articles:
- Check out the numbers with the third-quarter Fool by Numbers.
- Earlier this year, Barnes & Noble missed Harry Potter.
- Wall Street threw the book at the bookseller in May.
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