Barnes & Noble Sees 55% Rise in Q2 Profit
New York City, Barnes & Noble Inc.’s quarterly profit rose 55%. The company attributes some of its success to sales of the new Harry Potter book, Harry Potter and the Half-Blood Prince, saying the popular book increased customer traffic both in stores and on line.
Second-quarter net income for the bookseller increased to $13.5 million, or 18? per share. Last year, net income was $8.7 million, or 12? per share.
Barnes & Noble’s numbers differ greatly from those of its rival, Borders Group Inc. That bookseller also benefited from the Harry Potter book, but had decreased profit due to weak total sales in the U.K. and store remodeling.
High Gas Prices Hurt BJ’s and Wal-Mart
Natick, Mass. and Bentonville, Ark., The rising price of gasoline is not only affecting consumers. Retailers are also feeling the effects of the increases. BJ’s Wholesale Club reduced its earnings forecast for the year by about 3? per share because of lack of gas profits. The company said although prices and sales of gas rose, the profits in that segment of sales decreased.
Wal-Mart has also felt the increase in gas prices. The company said its sales growth was slowed for the second quarter to the lowest profit increase it has seen in four years because of rising fuel prices. Thomas M. Schoewe, Wal-Mart’s executive VP and CFO, said he believes high gas prices will “continue to impact a large portion of our customer base and put pressure on operating results.”
Kroger Ready to Broadcast
Cincinnati, The Kroger Co entered into a multi-year agreement with InStore Broadcasting Network to provide a television network for customers in more than 2,500 Kroger-owned stores across the country. The satellite-delivered network uses plasma and LCD screens located in key locations throughout the store to deliver information about new products, services, cooking tips and special promotions. Kroger community service and relevant entertainment segments are also highlighted.