Barnes & Noble Q1: Meets Low Expectations, Mulling Borders Buy? (BKS)

Barnes & Noble’s Q1 looked pretty much the way you’d exepct a book retail chain’s quarter to look these days: Thoroughly underwhelming. And that’s what the Street expected:

Revenue: $1.2 billion, up 1.1% vs. $1.17 consensus

EPS (adjusted): 5 cents, which was at the low end of guidance; matches Street expectations

Same-store sales: Down 1.5%

Barnes & sales: $99.6 million, up 7.2% y/y

Meanwhile speculation continues that Barnes & Noble wants to buy Borders, which makes a bit of sense: There’d be some obvious savings by consolidating back-end operations and dumping duplicative real estate, and the merged company would have that much buying power. The question that BKS investors have to ask themselves: Do they want to be in any brick-and-mortar book chain at all at this point in the game?

See Also: Anybody Want A Bookstore Chain?

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