US retail results poor

Barnes and Noble's website added to its losses

Barnes and Noble, the biggest book retailer in the US, has reported better than expected results on Thursday, bucking the trend during a gloomy day for store groups.

Other retailers did not fare so well, thanks to the mass lay-offs and recession fears which are taking their toll on consumer confidence and flattening consumer spending.

Kmart and clothing retailers Limited, Victoria's Secret and Men's Wearhouse all reported poor sales which slashed profits.

Barnes and Noble shares rose 4%, adding to their 80% gain this year, but Kmart fell as did the other retailers while the Dow traded flat at 10256, down 14 points at 1500 GMT.

Book keeping profits

The largest book store in the US reported a smaller second quarter loss of $1.7m compared to last year and break-even pro forma results that beat analysts' expectations.

Despite a 17% rise in sales to $1.05bn, costs related to the barnesandnoble.com online business pushed the company into the red.

Kmart's website tripled its losses

Kmart, the second largest US discount chain after Wal-Mart, posted a second-quarter loss before charges as price competition, the cost of remodelling its stores and attempts to widen its customer base ate away at its profits.

The loss came in at $22m before a $76m charge for the purchase of the 40% of Kmart's BlueLight.com online unit which it did not already own.

The figures met analysts' expectations but were down from a profit of $23m before charges last year.

Profits unfashionable

Women's and men's apparel retailer Limited said its second-quarter profits were cut in half to $34.4m as same-store sales fell 5%.

Intimate Brands, which is 84% owned by Limited, echoed the negative sentiment.

Intimate Brands operates Victoria's Secret and Bath & Body Works stores and reported a 30% drop in profits for the second quarter to $68.9m.

Men's Wearhouse reported a 36% drop in second-quarter earnings, in line with expectations, to $10.3 m.

The retailer, has been hit by the dwindling demand for men's business suits as the dress down trend grips corporate America.