Barnes & Noble
said it beat consensus estimates as its first-quarter loss before extraordinary items narrowed and sales improved at its core bookstores.
Before a charge, the world's largest bookseller posted a first-quarter loss of $1.4 million, or 2 cents a share, compared with a loss of 12 cents a share a year ago. Analysts polled by Thomson Financial/First Call had expected the company to lose 5 cents a share.
Barnes & Noble also reported a one-time, noncash impairment charge of $25.3 million, or 23 cents a share, to write down its investment in Gemstar stock.
Net bookstore sales were $861.5 million, 6.6% above last year's sales. Barnes & Noble stores saw an 8.1% increase in sales with 2.5% same-store sales growth, while B. Dalton Bookseller stores' sales declined 9.8% and same-store sales dropped by 1%.
Barnes & Noble also reported that
, in which it has a 60% stake, preformed better than expected. The company saw sales grow by 34.8% and net income grow by 28.7%, beating the consensus estimate.
Barnes & Noble.com posted a $4.4 million loss, compared with $7.1 million a year ago.
Going forward, the company said it sees full-year EPS above analyst estimates due to GameStop's better performance. The company now expects to see $1.90 a share for the year, above the consensus estimate of $1.86. Guidance for the core book business remains unchanged.
Shares of Barnes & Noble closed at $32.88 before the earnings release Wednesday.