Barnes & Noble loss widens, lowers outlook

NEW YORK, N.Y. Barnes & Noble reported a wider loss in its fiscal 2010 second quarter ended Oct. 31 and cuts outlook.

Total sales for the second quarter were $1.2 billion, a 4% increase compared with the prior year. Barnes & Noble store sales decreased 2% to $950 million, with comparable-store sales decreasing 3.2% for the quarter. The second quarter net loss was $24 million, or 43 cents per share.

For the company’s fiscal 2010 third quarter ending Jan. 30, comparable-store sales at Barnes & Noble stores are expected to decline 1% to 3%. The company continues to expect full-year comparable-store sales to decline 2% to 4%.

The company expects that general retail traffic will remain challenged during the holiday selling season. As a result of the above factors, the company is lowering its full year earnings per share forecast to be in a range of 33 cents to 63 cents, from its previous forecast of 59 cents to 89 cents. Third quarter earnings per share are expected to be in a range of $1.30 to $1.50.