The company's total sales were $1.2 billion for the period ended Aug. 4, a 7.6% increase from last year, while net income was $18 million, up from $16.6 million during the same period in 2006. "While this business doesn't tend to have a lot of peaks like Harry Potter, it also doesn't tend to have a lot of valleys," said Steve Riggio, the company's chief executive officer, during a conference call.
Barnes & Noble slightly cut back its store-opening guidance for the year, from between 35 to 40 new units to 30 to 35. The balance of the units will end up opening in 2008. "We could clearly turn that up and open more stores," says Mitchell Klipper, the company's chief operating officer. "We're opening best locations and not best-available locations."
During the second quarter Barnes & Noble opened four of its namesake superstores and closed two, brining it to a total of 698. It also closed three of its mall-based B. Dalton stores, leaving it with 94 in the chain.
For the third quarter, executives predict that same-store sales will come in from flat to an increase in the low single digits. They are also forecasting a loss of between 6 cents and 10 cents a share. New releases expected to help sales in the quarter include titles by former President Clinton, former Federal Reserve chairman Alan Greenspan and guitarist Eric Clapton.
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