Barnes & Noble Inc. shares tumbles by close to 6 percent on Tuesday after the bookseller’s third-quarter earnings reports revealed profits down more than 5 percent from last year. The New York-based Barnes & Noble reported profits of $80.4 million, or $1.38 a share, for the quarter that ended Jan. 30 down from $85 million, or $1.42 a share in the same quarter a year ago.
The drop in sales may be due in part to the popularity of such electronic readers as the Kindle and more recently the less than enthusiastically received IPad. Barnes & Noble also released its own weakly marketed reader, the nook, which has failed to reach sales expectations.
Still Barnes & Noble was not without more positive elements for the quarter. The bookseller acquired a college bookstore division in 2009 driving up sales by 33 percent with total revenue of $2.17 billion.
Those number exceeded analyst expectations for the company of $1.34 a share on revenue of $2.16 billion.
The outlook for the next quarter; however, does not look as bright with Barnes and Noble expecting to lose 85 cents per share.
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