Barnes & Noble 3Q Profit Falls 25%
New York City, Barnes & Noble, Inc. reported earnings of $10.2 million in the third quarter ended Oct. 30, a decline of 25% when compared with earnings of $7.6 million in the prior-year period. The book chain attributed the decrease in part to higher expenses and soft demand for bestsellers. Higher purchases of DVD media, juvenile products and cafe merchandise helped offset some of that weakness, the retailer said. Same-store sales were up 0.9% for the 13-week period, while overall sales rose 4% to $894.9 million at Barnes & Noble stores. Total revenues for the third quarter increased 15% to $1.46 billion from $1.27 billion.
REI to Expand Distribution Center
Sumner, Wash., Recreational Equipment Inc. (REI) plans to expand its distribution center here in Sumner, near the company’s Seattle headquarters.
The construction, scheduled to begin this month, will add 144,000 sq. ft. of floor space to the facility, which currently comprises 375,000 sq. ft. of floor space. Also, beginning next year, the retailer will upgrade the technology and equipment that move inventory throughout the facility.
Castagna Leaves JCPenney
Plano, Texas, Vanessa Castagna decided to leave JCPenney when her employment contract expires this Sunday, the retailer said today. Castagna was chairman and CEO of JCPenney stores, catalog and Internet. Her responsibilities will be held by Ken Hicks, president and COO of JCPenney stores and merchandise operations, until a permanent successor is found.
It was widely speculated that Castagna would leave JCPenney when she was passed over as the replacement for retiring company CEO Allen Questrom late last month. The job was instead given to Myron Ullman, who joined the retailer from LVMH and was once CEO of Macy’s.
Castagna has been with JCPenney since 1999.