Barnes & Noble expects fiscal Q3 EPS of $1.30-1.50 (vs. consensus estimates of $1.53) and full-year EPS of $0.33-0.63 (vs. consensus estimates of $0.99).

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The second quarter net loss was $24.0 million, or $0.43 per share. Included in the net loss were one-time transaction expenses of $0.13 per share associated with the College acquisition.

Bestselling titles during the quarter included Dan Brown's The Lost Symbol, Jeff Kinney's Dog Days (Diary of a Wimpy Kid Series #4), Mitch Albom's Have a Little Faith, Vince Flynn's Pursuit of Honor, Malcolm Gladwell's What the Dog Saw and Edward Kennedy's True Compass.

GUIDANCE

For the company's fiscal 2010 third quarter ending January 30, 2010, comparable store sales at Barnes & Noble stores are expected to decline 1% to 3%. The company continues to expect full-year comparable store sales to decline 2% to 4%. College's comparable store sales are expected to be in a range of 0% to 2% for the third quarter and to be in a range of 1% to negative 1% from the acquisition date to the end of fiscal 2010.

Owing to the overwhelming customer demand for nook(TM), the world's most advanced eBook reader, the company is ramping up its production schedule, incurring higher production costs than originally anticipated and increasing future investments related to its digital strategy, including additional people, technology and in-store marketing support. In addition, the company expects that general retail traffic will remain challenged during the holiday selling season. As a result of the above factors, the company is lowering its full year earnings per share forecast to be in a range of $0.33 to $0.63, from its previous forecast of $0.59 to $0.89. Third quarter earnings per share are expected to be in a range of $1.30 to $1.50.

As of October 31, 2009, the company operated 725 Barnes & Noble stores, 636 Barnes & Noble College Bookstores and 50 B. Dalton stores. During the second quarter, four Barnes & Noble stores were opened and three were closed.

A conference call with Barnes & Noble, Inc.'s senior management will be webcast beginning at 11:00 A.M. ET on Tuesday, November 24, 2009, and is accessible at www.barnesandnobleinc.com/webcasts.

Barnes & Noble, Inc. will report third quarter results on or about February 23, 2010.

ABOUT BARNES & NOBLE, INC.

Barnes & Noble, Inc. (NYSE: BKS), the world's largest bookseller and a Fortune 500 company, operates 775 bookstores in 50 states. Barnes & Noble College Booksellers, LLC, a wholly-owned subsidiary of Barnes & Noble, also operates 636 college bookstores serving nearly 4 million students and over 250,000 faculty members at colleges and universities across the United States. Barnes & Noble is the nation's top bookseller brand for the sixth year in a row, as determined by a combination of the brand's performance on familiarity, quality, and purchase intent; the top bookseller in quality for the second year in a row and the number two retailer in trust, according to the EquiTrend(R) Brand Study by Harris Interactive(R). Barnes & Noble conducts its online business through Barnes & Noble.com (www.bn.com), one of the Web's largest e-commerce sites, which also features hundreds of thousands of titles in its eBookstore (www.bn.com/ebooks). Customers can buy and read eBooks on a wide range of platforms, including the iPhone and iPod touch, BlackBerry(R) smartphones, as well as most Windows(R) and Mac(R) laptops or full-sized desktop computers.

General information on Barnes & Noble, Inc. can be obtained via the Internet by visiting the company's corporate website: www.barnesandnobleinc.com.

nook is a trademark of Barnes & Noble, Inc.

Social Media Links:
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SAFE HARBOR

This press release contains "forward-looking statements." Barnes & Noble is including this statement for the express purpose of availing itself of the protections of the safe harbor provided by the Private Securities Litigation Reform Act of 1995 with respect to all such forward-looking statements. These forward-looking statements are based on currently available information and represent the beliefs of the management of the company. These statements are subject to risks and uncertainties that could cause actual results to differ materially. These risks include, but are not limited to, general economic and market conditions, decreased consumer demand for the company's products, possible disruptions in the company's computer or telephone systems, possible risks associated with data privacy and information security, possible work stoppages or increases in labor costs, possible increases in shipping rates or interruptions in shipping service, effects of competition, possible disruptions or delays in the opening of new stores or the inability to obtain suitable sites for new stores, higher than anticipated store closing or relocation costs, higher interest rates, the performance of the company's online and other initiatives, the performance and successful integration of acquired businesses, the success of the company's strategic investments, unanticipated increases in merchandise or occupancy costs, unanticipated adverse litigation results or effects, the results or effects of any governmental review of the company's stock option practices, product shortages, and other factors which may be outside of the company's control. Please refer to the company's annual, quarterly and periodic reports on file with the SEC for a more detailed discussion of these and other risks that could cause results to differ materially.

BARNES & NOBLE, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(In thousands, except per share data)
                                                                     13 weeks ended     13 weeks ended    26 weeks ended     26 weeks ended
                                                                     October 31, 2009   November 1, 2008  October 31, 2009   November 1, 2008
Sales                                                                $     1,160,895    1,113,317         $     2,316,576    2,334,306
Cost of sales and occupancy                                                818,706      777,194                 1,618,532    1,623,784
Gross profit                                                               342,189      336,123                 698,044      710,522
Selling and administrative expenses                                        324,144      313,432                 612,795      613,224
Depreciation and amortization                                              49,169       44,213                  94,022       86,698
Pre-opening expenses                                                       1,284        3,310                   2,983        6,476
Operating profit (loss)                                                    (32,408   )  (24,832   )             (11,756   )  4,124
Interest expense, net                                                      3,945        1,311                   4,248        2,398
Income (loss) from continuing operations before taxes                      (36,353   )  (26,143   )             (16,004   )  1,726
Income taxes                                                               (12,421   )  (10,438   )             (4,311    )  730
Income (loss) from continuing operations (net of income tax)               (23,932   )  (15,705   )             (11,693   )  996
Loss from discontinued operations (net of income tax)                      -            (2,468    )             -            (3,828    )
Net loss                                                                   (23,932   )  (18,173   )             (11,693   )  (2,832    )
Net (income) loss attributable to noncontrolling interests                 (25       )  (247      )             4            (177      )
Net loss attributable to Barnes & Noble, Inc.                        $     (23,957   )  (18,420   )       $     (11,689   )  (3,009    )
Income attributable to Barnes & Noble, Inc.
Income (loss) from continuing operations                             $     (23,932   )  (15,705   )       $     (11,693   )  996
Less (income) loss attributable to noncontrolling interests                (25       )  (247      )             4            (177      )
Net income (loss) from continuing operations attributable to Barnes  $     (23,957   )  (15,952   )       $     (11,689   )  819
& Noble, Inc.
Basic income per common share:
Income (loss) from continuing operations attributable to Barnes &    $     (0.43     )  (0.29     )       $     (0.21     )  0.02
Noble, Inc.
Loss from discontinued operations attributable to Barnes & Noble,          -            (0.05     )             -            (0.07     )
Inc.
Net loss attributable to Barnes & Noble, Inc.                        $     (0.43     )  (0.34     )       $     (0.21     )  (0.05     )
Diluted loss per common share:
Income (loss) from continuing operations attributable to Barnes &    $     (0.43     )  (0.29     )       $     (0.21     )  0.02
Noble, Inc.
Loss from discontinued operations attributable to Barnes & Noble,          -            (0.05     )             -            (0.07     )
Inc.
Net loss attributable to Barnes & Noble, Inc.                        $     (0.43     )  (0.34     )       $     (0.21     )  (0.05     )
Weighted average common shares outstanding
Basic                                                                      55,230       54,411                  55,208       54,306
Diluted                                                                    55,230       54,411                  55,208       54,306
Dividends declared per common share                                  $     0.25         0.25              $     0.50         0.50
Percentage of sales:
Sales                                                                      100.0     %  100.0     %             100.0     %  100.0     %
Cost of sales and occupancy                                                70.5      %  69.8      %             69.9      %  69.6      %
Gross profit                                                               29.5      %  30.2      %             30.1      %  30.4      %
Selling and administrative expenses                                        27.9      %  28.2      %             26.5      %  26.3      %
Depreciation and amortization                                              4.2       %  4.0       %             4.1       %  3.7       %
Pre-opening expenses                                                       0.1       %  0.3       %             0.1       %  0.3       %
Operating profit (loss)                                                    -2.8      %  -2.2      %             -0.5      %  0.2       %
Interest expense, net                                                      0.3       %  0.1       %             0.2       %  0.1       %
Income (loss) from continuing operations before taxes                      -3.1      %  -2.3      %             -0.7      %  0.1       %
Income taxes                                                               -1.1      %  -0.9      %             -0.2      %  0.0       %
Income (loss) from continuing operations (net of income tax)               -2.1      %  -1.4      %             -0.5      %  0.0       %

BARNES & NOBLE, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands)
                                                   October 31, 2009    November 1, 2008  May 2, 2009
ASSETS
Current assets:
Cash and cash equivalents                          $     95,727        16,123            86,594
Receivables, net                                         146,035       94,511            70,721
Merchandise inventories                                  1,730,876     1,502,854         1,233,756
Prepaid expenses and other current assets                101,556       121,418           121,563
Current assets of discontinued operations                -             60,402            -
Total current assets                                     2,074,194     1,795,308         1,512,634
Property and equipment:
Land and land improvements                               9,298         9,324             9,298
Buildings and leasehold improvements                     1,212,259     1,097,879         1,102,439
Fixtures and equipment                                   1,563,163     1,355,932         1,331,524
                                                         2,784,720     2,463,135         2,443,261
Less accumulated depreciation and amortization           1,932,410     1,633,744         1,642,517
Net property and equipment                               852,310       829,391           800,744
Goodwill                                                 524,060       239,311           254,842
Intangible assets, net                                   587,913       84,580            82,691
Other noncurrent assets                                  68,854        8,207             13,368
Noncurrent assets of discontinued operations             -             25,452            -
Total assets                                       $     4,107,331     2,982,249         2,664,279
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable                                   $     1,279,257     906,071           698,315
Accrued liabilities                                      716,685       562,848           587,454
Current liabilities of discontinued operations           -             62,206            -
Total current liabilities                                1,995,942     1,531,125         1,285,769
Long-term debt                                           325,000       126,500           -
Deferred taxes                                           281,668       70,362            79,369
Other long-term liabilities                              626,717       391,250           387,318
Noncurrent liabilities of discontinued operations        -             9,258             -
Shareholders' equity:
Common stock; $.001 par value; 300,000 shares
authorized; 88,461, 87,637 and 88,225
shares issued, respectively                              88            88                88
Additional paid-in capital                               1,277,674     1,257,744         1,274,454
Accumulated other comprehensive loss                     (12,015    )  (11,044    )      (12,015    )
Retained earnings                                        661,481       654,231           697,042
Treasury stock, at cost, 33,213, 33,061
and 33,148 shares, respectively                          (1,050,802 )  (1,047,443 )      (1,049,328 )
Total Barnes & Noble, Inc. shareholders' equity          876,426       853,576           910,241
Noncontrolling interest                                  1,578         178               1,582
Total shareholders' equity                               878,004       853,754           911,823
Commitments and contingencies                            -             -                 -
Total liabilities and shareholders' equity         $     4,107,331     2,982,249         2,664,279

SOURCE: Barnes & Noble, Inc.

Media Contact: 
Barnes & Noble, Inc. 
Mary Ellen Keating, 212-633-3323 
Senior Vice President 
Corporate Communications 
mkeating@bn.com 
or 
Investor Contacts: 
Barnes & Noble, Inc. 
Joseph J. Lombardi, 212-633-3215 
Chief Financial Officer 
jlombardi@bn.com 
or 
Barnes & Noble, Inc. 
Andy Milevoj, 212-633-3489 
Director of Investor Relations 
amilevoj@bn.com

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Write to Chip Brian at cbrian@tradethetrend.com

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SmarTrend analyzes over 5,000 securities simultaneously throughout the trading day and provides its subscribers with trend change alerts in real time. To get a free trial of our trading calls and maximize your trading results, please visit http://www.TradeTheTrend.com.

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Write to Chip Brian at cbrian@tradethetrend.com

---------------------------------------------------------------------------------------------

SmarTrend analyzes over 5,000 securities simultaneously throughout the trading day and provides its subscribers with trend change alerts in real time. To get a free trial of our trading calls and maximize your trading results, please visit http://www.TradeTheTrend.com.

Get exclusive, actionable insight into how the market is expected to trend prior to market open with our free morning newsletter. Sign up at: http://www.TradeTheTrend.com/signup.html