Barnes & Noble lower as sales trends outweigh margin improvement

|About: Barnes & Noble Inc (BKS)|By:, SA News Editor

It was race by Barnes & Noble (BKS -1.2%) to cut costs as fast as sales dropped off during Q3.

Though the company managed to improve its gross margin rates as the costs of sales and SG&A expenses fell sharply, investors are latching onto the sales trend more than the profitability swing.

The drop in Nook revenue (digital and device) wasn't a shocker, but a comp sales falloff of 4.9% at B&N bookstores was a bit wider than analysts forecast.