Barnes and Noble down 8 percent...if you thought that the recent bankruptcy of Borders would help, since many of the BKS bookstores are close to Borders, you might have to rethink that. Q3 earnings of $1.00 were below consensus of $1.13.
They are suspending sales and earnings guidance for the rest of fiscal 2011 and suspending the dividend of $0.25 per share . Even college sales were a disappointment, with comp store sales down 2.2 percent; they blamed inclement weather (they bought the college division in August 2009).
The one bright spot: BN.com sales were up 64 percent, they now sell twice as many ebooks as they do physical books at BN.com. Nook sales are strong (they did not provide sales figures), but the implosion of the physical book business is clearly happening faster than anyone thought.
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