Profit Slims for Barnes & Noble

Start-up costs for a new 1.1-million-sf distribution center that opened in August ate into earnings by 3 cents per share and a trio of hurricanes along the Gulf Coast crippled sales in those regions, trimming comparable store sales by half a percentage point to 1.5%. Two Barnes & Noble stores remain closed as a results of those hurricanes, the company said.

Overall sales for the period rose 4% to $1.08 billion with sales at the company's 693-storeflagship operation also up 4% to $930.5 million. Same store sales at Barnes & Noble's were also up 1.5%. while sales on the internet increased 8% to $99.4 million.

At the company's 141-store B. Dalton outlets, sales were down 21% to $28.4 million, due primarily to the closing of five stores in the last three months. Comparative store sales at the chain fell 1.6%.

"We're pleased with our performance in the third quarter especially in light of the lackluster lineup of new releases in September," said Stephen Riggio, the firm's chief executive officer. Riggio said the New York City-based bookseller will enter the holiday season without a blockbuster title on its shelves but noted that sales of books by popular authors along with book-related gift items are expected to do well.

In the fourth quarter, the bookseller said it expects to post a profit of $1.72 to $1.76 per share, including about 3 cents per share in costs related to its new distribution facility. The full year forecast calls for earnings of $1.99 to $2 per share, up from a previous estimate of $1.94 to $1.98.

The company said it also repurchased 2.8 million shares of its own stock for $105 million and has about $185 million remaining in its stock buyback program.