Barnes & Noble reports 3Q loss

By ANNE D'INNOCENZIO, AP Business Writer Thu Nov 16, 4:25 PM ET

NEW YORK - Barnes & Noble Inc., the nation's largest bookseller, reported on Thursday a $2.7 million loss in the third quarter as sales edged higher.
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The company said its loss amounted to 4 cents per share for the three-month period ended Oct. 28, compared with a year-ago profit of $327,000, which was break-even on a per-share basis.

The latest results included a 3 cent per share impact due to stock compensation expenses.

Revenues reached $1.1 billion, slightly higher than the year-ago's $1.08 million.

The results were in line with the consensus from analysts polled by Thomson Financial.

The company called the results preliminary and said it will not be in a position to finalize its financial results and related financial statements until the special committee of its board completes its internal review of the company's option grant practices. It said it will then determine what impact, if any, the results of that investigation will have on financial statements.

Barnes & Noble is among dozens of companies being investigated by the
Securities and Exchange Commission for stock option practices.

For the fourth quarter, Barnes & Noble expects same-store sales, or sales at stores open at least a year, at Barnes & Noble stores to range from unchanged to an increase in the low single digits. Based on year-to-date results and current trends, the company now expects full year same-store sales to range from unchanged to a slight decrease over a year ago.

The company said it expects earnings per share to be in a range of $1.86 to $1.96 per share for the fourth quarter. For the full year, the company projects a per-share range of $2.20 to $2.30. The company's fourth-quarter and full-year earnings outlook includes a stock compensation expenses of 3 cents per share and 14 cents per share, respectively.

Analysts polled by Thomson Financial expect $1.95 per share in the fourth quarter and $2.27 per share for the year.

Its shares fell $1.03, or 2.4 percent, to $41.60 in morning trading on the
New York Stock Exchange.