Harry Potter casts spell on B&N's 2Q

NEW YORK Barnes & Noble today reported that sales for its second quarter 2007 increased 7.6% to $1.2 billion. Barnes & Noble store sales increased 7.3% to $1.1 billion, with comparable-store sales increasing 4.4% for the quarter. Barnes & Noble.com sales were $97.5 million for the quarter, a 17.9% comparable sales increase compared to the prior year period. The company attributes its second quarter results to the success of the final book book in the Harry Potter series, "Harry Potter and the Deathly Hallows."

Second quarter net earnings were $18.1 million or 26 cents per share.

"Record breaking sales from J.K. Rowling's 'Harry Potter and the Deathly Hallows' was the principal driver behind our comparable-store sales growth in the quarter," said Steve Riggio, ceo of Barnes & Noble. "The book continues to sell well, as do all the previous volumes in the Harry Potter series. The new release schedule for the third quarter includes a few books that should generate significant media attention, including President Clinton's 'Giving,' Alan Greenspan's 'The Age of Turbulence' and Eric Clapton's 'The Autobiography.' Based upon current trends, we remain comfortable with our full year sales forecast."

For the third quarter, the company expects comparable-store sales at Barnes & Noble stores to range from flat to an increase in the low-single digits. The company continues to expect full year comparable-store sales to range from flat to slightly positive.

Barnes & Noble third quarter loss per share is expected to be in a range of 6 cents to 10 cents.