Barnes & Noble, now the only major national bookstore chain (that was weird to write), had a relatively decent first quarter. Except that the retailer lost $23.6 million, and same-store sales dropped.
Same-store sales fell 1.8%, and this happened during a quarter that saw its competitor Borders making mass store closures. But the current quarter will see all of the Borders shut down, so maybe that will give B&N a boost.
On the earnings side, the retailer did lose a major chunk, but the drop was less than the previous quarter, which saw a $30.7-million deficit. Other good news: B&N's management expects full-year earnings to come in between $210 million and $250 million during the full fiscal year.
And due to the demise of Borders, it sees a $150 million to $200 million sales boost coming, leading to a same-store sales increase 2% to 3%. Overall though, online sales seem to be the driver of B&N's business.
How do you think the chain will fare? Can it continue at its current store count, or will it have to close a chunk of stores like Borders to do well on the brick-and-mortar front?
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