Specialty Retailers Post Strong Profits

Robust earnings reports continue to stream in from specialty retailers. Barnes & Noble Inc. posted fiscal third-quarter profit of $3.39 million, or 5 cents a share, meeting estimates, as sales of Harry Potter children’s books and Stephen King novels tempered losses in its Internet business. The nation’s largest bookseller lost $4.6 million, or 7 cents, in the year-earlier period. Sales grew 9% to $715.9 million. Sharper Image Corp., a retailer of gadgets and electronic toys, reported a profit of $148,000, or 1 cent a share, as sales soared 36% to $58.3 million, with a boost from Internet sales. Analysts were expecting a loss of 3 cents. The retailer had a loss of $1.46 million, or 17 cents, a year earlier. Internet sales grew more than sevenfold to $5.3 million from $701,000. The company said its online sales are likely to be about $30 million this year, or as much as 12% of revenue. Starbucks Corp. said its profit grew 27% to $32.4 million, or 17 cents a share, matching estimates, as sales jumped 33% to $474.9 million.