Barnes & Noble: The Final Chapter?

[JW2020]

http://finance.yahoo.com/blogs/breakout/barnes-noble-final-chapter-151038001.html

The last nationwide book retailer may be writing its final chapter. Barnes & Noble's (BKS) latest quarterly sales results show a lack of foot traffic in the stores and an absence of management focus on retail that foreshadows a disappointing end for the company's 675 stores and perhaps its entire existence.

This morning the company reported a 7.4% drop in revenues and a $122 million loss for the fourth-quarter of its fiscal year. For the full year Barnes & Noble earned a mere $10 million, compared to $177 million in 2012.

B&N's disastrous focus on making Nook e-Readers is weighing heavily on the chain's operations. A 17% drop in Nook revenues and stunning $475 million loss for the device division in 2013 are hobbling the company's ability to keep its stores afloat in an increasingly tough environment for bricks and mortar stores.

Brian Sozzi, CEO and chief equities analyst at Belus Capital Advisors, thinks the odds are stacked against Barnes & Noble. "I have no confidence in this company surviving," Sozzi says in the attached video. In large part that has to do with the company cannibalizing itself with branded tablets and e-reader applications. "The more they continue to pump this Nook app across platforms the stores become increasingly irrelevant."

Most people who pay attention saw this coming. The DVD box sets for 1960s sitcoms were selling for $70 in B&N. Go on to amazon and the same product would be selling for $20.

[mikeysnot]

1. I miss going to book stores

Have to drive up to Skokie to go to a brick and mortar store...

There used to be three within five minutes of me, now there is none.

[DainBramaged]

2. One of the things I loved to share with my daughter when she was a kid was going to Borders

and sitting with her in the kids section while she picked out books. She had a system, which I realized later on, was skillful and well thought out. She'd not pick out the book she actually wanted at first. She'd spend an hour looking at everything then she'd take one, look at it for a few minutes, then when I asked if she wanted it she'd say yes hesitatingly. A few minutes would go by, and she'd ask "can I trade it for this one instead?" After examining it, I'd agree. This would go on until her original $2.00 book became a $20 book, which I would have bought her anyway, but I simply enjoyed her horse trading with me.


Days gone by.....

[mikeysnot]

6. Same here

my son loves non-fiction science, bug books. But we use the library down the block now. it is free.

[DainBramaged]

7. Enjoy every minute, remember every second

When the days are dark, those wonderful memories shile a light through the darkness.....

[snappyturtle]

3. I am not surprised by this but I think we should consider what B&N

was/is up against with internet giant Amazon. I view Amazon a bit like Walmart...it's gobbled up a lot of business. In B&N's case, it can't become a vendor with Amazon, can it?

Amazon is everywhere....my closest B&N is 60 miles away. I have a Nook and love it. It's income I spend at B&N because I don't have to spend a bundle for a hardback copy. Obviously, it's not enough. I also think B&N had no choice in developing the Nook...they're just in a bad position. Too bad...their stores are an oasis in malls, to me.

The 'other' thing: I think fewer and fewer Americans are avid readers.

[JW2020]

4. There seems to be this trend of book buying for souvenirs

or movie tie-ins. Some movie or TV show based on a book rebrands the book with the movie stars from the movie on the cover and they sell a lot more. I doubt the people buying these books are really reading them.

[snappyturtle]

5. We used to call these 'coffee table books'...they look good. nt