Barnes & Noble sales plummet

New York – Barnes & Noble employed cost-cutting measures that shifted net loss to net income for the second quarter of fiscal 2014 even as net sales took a tumble. Net income of $13.2 million compared to a roughly $502 million net loss reported in the second quarter of fiscal 2013.

In contrast, net sales of $1.7 billion were down about 8% from $1.88 billion. Revenues declined across all segments of the company, but the decrease was particularly acute in sales of its Nook e-reader, which fell about 32% to $107.8 million with prices and sales both falling.

The company reaffirmed its previously issued full-year guidance, in which it expects retail same-store sales to decline in the high single digits, core retail same-store bookstore sales to decline in the low- to mid-single digits and college same-store sales to decline in the low single digits.

“During the second quarter, Barnes & Noble grew earnings through improved margins and reduced expenses, while also completing another successful college rush season,” said Michael P. Huseby, president of Barnes & Noble, Inc. and CEO of Nook Media. “The company is focused on executing its plans for the holiday season and our booksellers are prepared to welcome holiday shoppers and recommend thoughtful gift ideas for everyone on their list. We have a terrific book title line-up this holiday season, a leading assortment of educational toys and games and a full selection of Nook devices, including our recently released new Nook GlowLight.”

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