The raunchy, sex induced trilogy, 50 Shades of Grey has not only managed to become a number one seller and influence the entire sex industry, it has also boosted profit for brick-and mortar-stores like Barnes and Noble.
The company also benefited from the closing of competitor Borders a year ago and the increased sale of digital books for its Nook e-Reader. But lower sales and prices of the Nook reader itself kept its digital revenue flat in the quarter.
Sales at the company stores increased 2 percent.
Barnes and Noble did not release the sale figures from 50 Shade of Grey, but Mitchell Klipper, the CEO of the company's retail unit told analysts that "clearly '50 Shades of Grey' had the biggest impact in the numbers."
According to publisher Vintage Books, the trilogy has sold more than 25 million copies in the United States
Barnes & Noble reported a net loss of $41 million in the quarter ended July 28, a 28% improvement from the net loss a year earlier. The loss was 20% smaller than the forecast from analysts surveyed by Thomson Reuters.
The limited loss gave room for the company to see profit when interest, taxes and depreciation and amortization were excluded, a turnaround from loss on that basis a year earlier.
That investment, announced in April, values the Nook business at about $1.7 billion. Barnes & Noble (BKS, Fortune 500) stock, which has given up all of the large gain it enjoyed on the news of the investment, is worth only $708 million, pointing out the continued doubts that investors have about the traditional book business.
Shares slipped 1.3% Tuesday following the results announcement.
If the popularity of 50 Shades of Grey continues, it can be predicted that an entire new market will open for it. The Edgewater Hotel in Seattle is selling an experience straight out of the pages. The package includes wine, a car demo and a map to the Seattle destinations mentioned in the books.
You pay $759 for a one-night stay at a waterfront premium room over the weekend. Upon arrival, you're treated to the couple's favorite champagne and find a copy of "50 Shades of Grey" in your nightstand. The package also includes a demo drive from University Audi and a sailing excursion in Puget Sound.
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