* Q4 loss 98 cts/shr vs View 93 cts/shr
* Sees FY retail comp sales down
* Shares close down 4 percent
By Brad Dorfman and Phil Wahba
June 19 (Reuters) - Barnes & Noble Inc reported lower-than-expected quarterly revenue, hurt by disappointing sales of its Nook digital books and e-readers, and the top U.S. bookstore chain expects sales at its stores to fall this fiscal year.
The bookseller's sales in the fourth-quarter were hurt by returns of the device from retailers as well as price cuts put in place in February on some versions of the device to compete with Amazon.com's Kindle franchise.
The company, which has bet its future on staking a claim in the e-books industry, suffered a setback as Nook revenue fell 10.5 percent.
"The weakness should remind investors of the constant need for investments and the intense competition with Amazon and Apple," said Credit Suisse analyst Gary Balter in a note.
But keeping Nook competitive is expensive: the Nook business lost $77 million on revenue of $163.6 million in the quarter.
After getting a bump thanks to defunct rival Borders Group's bankruptcy in recent quarters, the company expects sales at existing bookstores to drop by a low to mid-single digit percent in the current fiscal year.
Barnes & Noble shares closed down 4 percent at $14.63. They are down 43.7 percent from a 52-week high in April.
The company has poured hundreds of millions of dollars into the development of the Nook, including a recent, well reviewed glow-in-the-dark model, whose positive reviews allowed it to garner some 27 percent of the U.S. e-books market in the 2-1/2 years since the reader was launched.
But that compares with 60 percent for Amazon, and in January, the retailer acknowledged slower-than-expected sales of devices such as the black-and-white Nook Simple Touch.
As the black and white e-reader market matures, the battleground is shifting more to color e-readers and tablets that offer more media, and not just text.
"That's where Barnes & Noble has an uphill battle," Morningstar analyst Peter Wahlstrom said. "Amazon has a distinct lead in that area."
Barnes & Noble is counting on a deal with Microsoft Corp and reduced development expenses for Nook to ease losses for the digital business this fiscal year.
The deal, in which Microsoft will invest $300 million and get a 17.6 percent stake in a new subsidiary consisting of the Nook digital business and its College bookstore chain, is expected to close later this year.
Microsoft announced plans on Monday to launch its own line of tablet computers to compete with Apple Inc's iPad.
Barnes & Noble also plans to have Nook devices and digital book stores in some international markets for the holiday season.
Revenue for the quarter was $1.38 billion, up slightly from a year earlier, but below the average analyst estimate of $1.48 billion, according to Thomson Reuters I/B/E/S.
The company posted a net loss of $57.7 million, or $1.08 per share, for the quarter, compared with $59.4 million, or $1.04 per share, a year ago.
Excluding one-time items, the loss was 98 cents a share, compared with the average analyst estimate of a loss of 93 cents, according to Thomson Reuters I/B/E/S.
Same-store sales at its 700 super stores rose 4.5 percent compared with the year-earlier quarter. But some of that increase was due to more of a boost than the company expected from Borders going out of business.
Same-store sales at its College bookstore chain, which generates nearly one quarter of revenue, fell 2.2 percent during the quarter. But Credit Suisse's Balter said Barnes & Noble has been able to win new contracts.
Our 2024 Coverage Needs You
It's Another Trump-Biden Showdown — And We Need Your Help
The Future Of Democracy Is At Stake
Our 2024 Coverage Needs You
Your Loyalty Means The World To Us
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
The 2024 election is heating up, and women's rights, health care, voting rights, and the very future of democracy are all at stake. Donald Trump will face Joe Biden in the most consequential vote of our time. And HuffPost will be there, covering every twist and turn. America's future hangs in the balance. Would you consider contributing to support our journalism and keep it free for all during this critical season?
HuffPost believes news should be accessible to everyone, regardless of their ability to pay for it. We rely on readers like you to help fund our work. Any contribution you can make — even as little as $2 — goes directly toward supporting the impactful journalism that we will continue to produce this year. Thank you for being part of our story.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
It's official: Donald Trump will face Joe Biden this fall in the presidential election. As we face the most consequential presidential election of our time, HuffPost is committed to bringing you up-to-date, accurate news about the 2024 race. While other outlets have retreated behind paywalls, you can trust our news will stay free.
But we can't do it without your help. Reader funding is one of the key ways we support our newsroom. Would you consider making a donation to help fund our news during this critical time? Your contributions are vital to supporting a free press.
Contribute as little as $2 to keep our journalism free and accessible to all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. Would you consider becoming a regular HuffPost contributor?
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. If circumstances have changed since you last contributed, we hope you'll consider contributing to HuffPost once more.
Support HuffPostAlready contributed? Log in to hide these messages.