Barnes & Noble results swing to profit on strong sales of new releases

NEW YORK -- Barnes & Noble Inc.'s third-quarter results swung to a profit in the third quarter, as the nation's largest bookseller enjoyed strong sales of new releases.

The New York-based company recorded a profit of $4.38 million, or 7 cents per share, for the three months ended Nov. 3. That compared with a $2.77 million loss, or 4 cents per share in the year-ago period.

The company recorded a 5.7 percent increase in sales to $1.2 billion, from $1.11 billion in the year-ago period.

Analysts polled by Thomson Financial expected a 8 cent loss on sales of $1.145 billion.

"The company's sales continued to perform at the higher end of expectations, due in part to strong sales of new releases and bestsellers, which combined with a better than expected gross margin rate enabled the company to outperform its third-quarter earnings expectations," said Steve Riggio, chief executive officer of Barnes & Noble, in a statement.

Riggio said the company has been encouraged by sales trends at Barnes & Noble.com that began earlier this year and continued through the third quarter, when the company launched a newly designed Web site.

Barnes & Noble store sales increased 4.5 percent to $1 billion, with same-store sales increasing 2.6 percent for the quarter, at the high end of the company's projections. Same-store sales, locations opened at least a year, are considered a key indicator of a retailer's health.

Barnes & Noble.com sales were $108.2 million for the quarter, a 14.5 percent same-store sales increase compared with the prior year period.