The largest bookstore in the U.S. has posted a $2.7 million first quarter loss.Though it has surpassed market expectations, the recession and fierce competition from rivals like Amazon has taken its toll on the company.
Call it Amazon or the recession, Barnes and Noble has posted a $2.7 million loss in the first quarter. Still, it beat market expectations of a larger loss and strengthened by the first quarter’s results, the outlook projected for the future sales is a little less gloomy.
The revenue also fell 4% to $1.11 billion, up $30 million than anticipated.
In a statement by Barnes and Noble, "Based on the company's better-than-expected performance during the first quarter, the company is raising its full-year earnings per share guidance range to $1.10-$1.40, from $0.95 to $1.25,"
According to BBC Business, shares in Barnes and Noble which promised a 25 cents per share quarterly dividend, gained 4.5% to $24.97.
Market consultants have advised the bookstore to hold on to its current customer base and not attempt to match head to head with Amazon, given the economic slump and the vast market share of Amazon.