The nine-week holiday selling period at Barnes & Noble was another rough one, with same-store sales down 5.4 percent at $1.1 billion (and bear in mind that the comps a year ago were down 7 percent from 2007). Sales at BN.com rose 17 percent however, at $134 million, in large part because of nook revenues recognized in that period. (BN.com had sales of $114 million in the same period a year ago. When the company reported second quarter earnings in late November, BN.com was up 9 percent for the period. So figure that recognized nook revenues are roughly between $10 million and $20 million.”
Holiday sales were “lower than expected,” and the company lowered their guidance on earnings for the full quarter from $1.30 to $1.50 a share down to $1.20 to $1.40 a share. BN already reduced full-year earnings guidance in November based on holiday doldrums and extra costs of ramping up the nook.
CEO Steve Riggio indicates in a brief statement it will take them another few months to catch up with nook demand: “Orders for nook remained strong throughout the holiday season, and, in
fact, accelerated after we announced that we had sold out our initial
supply. Demand remains strong in the New Year and greater than our
supply, however, we expect production to catch-up with demand and be
fully stocked in our stores in the next few months.”
Release