Investors skittish about Barnes & Noble in front of earnings

Barnes & Noble (BKS -3.1%) slips in trading just a day before the company's earnings report.

Analysts expect B&N to have lost $0.74 per share on revenue of $132B during its FQ1.

The bull case: SA contributor Peter Larson thinks the company could use prior inventory write downs to help it beat estimates.

The firm's Q&A with analysts will be highly-dissected to try to determine the direction the Nook business will take.

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