NEW YORK, USA

Barnes & Noble Inc said yesterday it narrowed its net loss in its fiscal first quarter as sales of its Nook e-book reader and e-books helped offset lower physical book sales.

Traditional booksellers are facing tough competition from online retailers and discount stores. Barnes & Noble has invested heavily in its e-book reader to combat this.

“In fiscal 2012, we expect to see leverage as our digital sales growth is projected to exceed the growth of investment spend,” said CEO William Lynch.

Barnes & Noble, which received a US$204 million investment from former suitor Liberty Media earlier this month, said its Nook business, including Nooks themselves, e-books and magazines and other digital content and accessories, rose 140 per cent to US$227 million during the quarter.

The largest US traditional book retailer says its net loss was US$56.6 million, or 99 cents per share. That compares with a loss of US$62.5 million, or US$1.12 per share, last year. Analysts expected a loss of 94 cents per share.

Revenue rose nearly two per cent to US$1.42 billion from US$1.4 billion. Analysts expected US$1.46 billion in revenue.

Revenue in stores open at least one year — a key indicator of a retailer’s health — fell 1.6 per cent at regular stores and 1.8 per cent at college bookstores. But revenue from the web site rose 37 per cent, driven by sales of Barnes & Noble’s Nook Colour and Nook Simple Touch Reader, as well as digital content.

Barnes & Noble says it expects to get a lift in sales of US$150 million to US$200 million after former rival Borders, which declared bankruptcy in February and said it would liquidate in July, completes liquidation sales and ends operations.

In fiscal 2012, the company expects a net loss of 10 cents to 50 cents per share on revenue of US$7.4 billion. Analysts expect a net loss of 16 cents per share on revenue of US$7.43 billion.

The company, based in Ann Arbor, Michigan, expects revenue from its Nook business to double in 2012, to US$1.8 billion from US$880 million.

AP

PORTLAND, USA — A Barnes & Noble store front in Portland, Oregon. (Photo: AP)