Barnes & Noble Pussyfoots Around Leases

Barnes & Noble (BKS) reported Q3 results and disappointed investors, if that is possible in todays environment. The one note of hope that management was able to hold out was that many of their stores leases are coming up for renewal. They claim that most of the leases are being negotiated for much less than the existing terms. That’s good, actually very good. But they cannot or will not provide any sort of schedule to show exactly what the impact on EPS will be from leases that have been favourable renegotiated. Also they do not disclose how many leases are coming up for renewal and exactly when we can expect cost reductions.

Cards are too close to the vest on this point. Also in reviewing the transcript of the conference call there was no discussion of the dividend. The yield is in the 8% range. You know that cannot hold. Analysts did not question. Management did not disclose. See no evil, speak no evil but its evil if you do not hear about this one.