Shares of Barnes & Noble
Demand for hardback political titles, especially war-related commentary, drove sales at Barnes & Noble stores 13% higher to $910 million. Comps rose a healthy 9.6%, though, as management noted, a slow first quarter last year made for easy year-over-year comparisons. Comps were 6% higher at B. Dalton, with the mall-based stores contributing another $39.7 million to the top line.
Performance at BarnesandNoble.com
The company is also a majority owner of GameStop
Though the video game industry is highly cyclical, the volatility is muted by otherwise stable and predictable sales and earnings at Barnes and Noble. The unit now accounts for one quarter of total revenues, and ambitious expansion plans are in place.
With Barnes & Noble's first quarter now in the books, investors should turn to competitor Borders
Though second-quarter sales are unlikely to top the prior year's, which included the June release of the fifth installment in the wildly popular Harry Potter series, Barnes & Noble management has reaffirmed full year earnings guidance in the $2.19 to $2.26 range. That equates to a forward P/E ratio of 13, not exactly clearance level, but still somewhere in the bargain bin.
BarnesandNoble.com competitor Amazon.com is a Motley Fool Stock Advisor recommendation. Sign up for six months, without risk, to learn more.
Fool contributor Nathan Slaughter routinely frequents the local Barnes & Noble, though he owns none of the shares listed.