Book category continues to suffer in downturn

New York City The country’s two major booksellers reported quarterly results on Tuesday, and the picture wasn’t rosy. Barnes & Noble reported a second-quarter loss of $24 million, widened from a loss of $18 million a year ago. Included in the net loss were one-time transaction expenses of $0.13 per share associated with the college acquisition.

Barnes & Noble lowered its guidance due to expected weak holiday sales and higher-than-expected costs to ramp up production of its electronic book reader, the Nook. The company also noted it is increasing future investments related to its digital strategy, including additional people, technology and in-store marketing support.

Total sales for the quarter ended Oct. 31 were $1.2 billion, a 4% increase over the year-ago period.

Meanwhile, competitor Borders Group lost money for the third straight quarter as sales at its bookstores continued to decline, but the loss was smaller than a year ago. For the fiscal third quarter ended Oct. 31, the company lost $39 million, improved from a loss of $172 million a year ago.

Total sales declined to $595.5 million, compared with $682.1 million in the prior year.

Comparable-store sales dipped 12.1% and 7.2% at Borders superstores and Waldenbooks stores, respectively.

Borders has been trying to turn around its business for some time. The bookseller continued its efforts during the quarter, trimming inventory by $99.1 million and lowering its selling, general and administrative expenses by $27.1 million. Total debt was $375 million at quarter's end, a reduction of $112 million.