News Summary: Barnes & Noble reports 2Q profit
THE NEWS: Barnes & Noble reported a second-quarter profit but its digital content growth slowed. Revenue was nearly flat at $1.88 billion.
THE CONTEXT: The largest traditional book retailer has invested heavily in its Nook e-business as consumers increasingly shop online and read e-books. Barnes & Noble said revenue from its Nook business grew. Digital content revenue grew 38 percent, but that was down from a 46 percent increase in the fiscal first quarter.
WHAT'S NEXT: CEO William Lynch said the company expects digital content buying to pick up after the holiday season, when Nooks are expected to be popular gifts.