BARNES & NOBLE INC. New York, New York; Retailer Books It To Higher Financial Ground.(THE NEW AMERICA)

Byline: PETER BENESH

It's blockbusters. And big box stores. It's a decent cup of coffee and comfy seating. It's also market research and a keen eye on demographics.

That's the formula propelling Barnes & Noble Inc. in the competitive world of book selling, says Chief Financial Officer Joe Lombardi.

Most book selling is seasonal, he says. But for Barnes & Noble, Christmas came in June, dressed in wizard's garb.

"We sold over 1 million of the latest Harry Potter (book) in a couple of days in June," Lombardi said.

Then came Hillary Clinton's memoirs and Dan Brown's "Da Vinci Code." Those best-sellers lifted the whole bookselling industry.

The trick for Barnes & Noble is to differentiate itself from the competition, says analyst William Armstrong of C.L. …