US largest bookstore Barnes & Noble Inc., reported a declining profit margins during the holiday season, hitting the shares of the company by 6 percent.

Company's net profit margins declines to $80.4 million during the quarter against the $85 million, a year earlier. However the sales of the company recorded an increase of 33% in its total revenue with the acquisition of college bookstore division last year.

Company recorded an increase in the online sales.

According to Steve Riggio, CEO of Barnes, the company's core e-business has gained momentum during the year and in the year 2010; company is expecting to be in the full stock of Nook Devices and shall display a good show in the market.

However the official didn't comment on the hike in the earnings, the company expects from the Nook against the physical books.

For the fourth quarter of current fiscal year company expects to report a loss in the range of 85 cents to $1.15 per share.