Barnes & Noble limits profit fall

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Barnes & Noble, the largest US bookstore chain, has reported another fall in quarterly profits, but cost-cutting managed to limit the decline.

Net profit at the firm fell to $12.3m (£7.5m) in the three months to 1 August, down 27% from a year earlier.

Its latest profit equates to 21 cents per share, while analysts had been expecting it to fall to 9 cents.

Same-store sales at the firm, which pull out the impact of new openings, declined 6.9% from last year.

The firm's second-quarter revenues were down 5% to $1.16bn.

Analysts said Barnes & Noble continued to be hit by consumers cutting back their discretionary spending due to the recession, or else switching to discount booksellers.

The firm expects same-store sales to decline again between August and October.

US retail sales unexpectedly fell in July, following two months of rises, official figures showed earlier this month.

Sales declined 0.1% in July, following a revised 0.8% increase in June, said the Commerce Department.