Shares of Barnes & Noble Inc. (BKS), the world’s largest bookseller surged 6 percent Thursday on better-than-expected quarterly profit.

The company, which operates 778 bookstores in 50 states and has one of the Web’s largest e-commerce sites, said it earned $1.67 per share in its fourth fiscal quarter excluding charges amounting to 21 cents per share tied to severance and discontinued operations.

Analysts, who typically don’t include one-time charges in their estimates, were expecting the company to earn $1.48 per share in the quarter according to Reuters Estimates.

Revenue came in shy of expectations though, $1.63 billion compared to estimates of $1.78 billion, as shoppers continued pairing back on non-essential items in the face of the worst economic downturn in decades.

Same-store sales, or sales at stores open at least a year, fell 7.3 percent from a year ago while sales from Barnes & Noble.com were down 10.4 percent.

Analysts were focused on the company’s outlook for the current quarter which was in-line with their expectations, providing the impetus for a relief rally. Barnes & Noble said it expects a first-quarter loss of 10 cents to 20 cents per share with a same-store sales decline of 6 percent to 9 percent.

The company also said full-year profit will range between 95 cents to $1.25 per share. Analysts were expecting a loss of 17 cents per share for the quarter and a profit of $1.11 per share for the year.

CEO Stephen Riggio said that fiscal 2008 was by far the most difficult year Barnes & Noble had ever experienced. For the first time the company’s comparable store sales fell in every quarter. Nevertheless, he said despite a 3 percent sales decrease for the year gross margins improved by 50 basis points and inventory levels were reduced by 11 percent, and the company’s focus on expense control and capital expenditures enabled it to generate operating free cash flow of $150 million.

Riggio said he expects the challenging environment to continue and the company has planned its sales forecasts accordingly and cut expenses. The strength of the balance sheet remains a top priority and while overall expense levels are being reduced where appropriate, investments will continue to be made in the growth areas of the business.

To that end Barnes & Noble recently acquired Fictionwise, an electronic bookseller, and launch an e-bookstore later this year. The weakness is a good time for the company to focus on the future.

This article was written by Jamie Dlugosch, contributor to InvestorPlace Media. For more actionable insights likes this, visit www.InvestorPlace.com.