Nov. 26 (UPI) -- Barnes and Noble, the largest U.S. bookstore chain, saw declining sales across the board, but it surprised Wall Street with a better-than-expected bottom line thanks to cost-cutting.
Shares fell more than 6 percent by midday Tuesday.
The company's second quarter revenue fell almost 8 percent to $1.73 billion from $1.88 billion a year prior. Analysts expected revenue of $1.76 billion.
College revenues and same store sales dipped almost 5 percent each. The company says this is because there were no blockbusters this year as there were last year, with strong performance from Hunger Games and Fifty Shades of Grey. A publishing trade association indicated a 5 percent decline in publishing for the first half of 2013.
Nook sales plunged more than 32 percent, and digital sales also declined. This comes after the company considered for 18 months to split its traditional retail business from the e-book and e-reader operations as it faced rising competition from Apple and Amazon.
The company ultimately scaled back its Nook operations, and soon its CEO William Lynch resigned.
But profits rose to $13.2 million, or 15 cents a share, from $501 million, a loss of 7 cents a share in the year-ago period.
[Wall Street Journal]