B&N released their Q1 2014 (May, June and July 2013) sales yesterday. The numbers were disappointing although not altogether surprising.
Superstores revenues decreased 9.9% but still made $65-million.
College stores sales were actually up 2.4% but lost $19-million.
Nook revenues were down a stunning 20.2% and lost $55-million.
The results were not much of a surprise to Wall Street or the publishing industry. The Nook is bleeding money and losing share whereas the Superstore bricks and mortar locations continue to produce profits. Although the stock closed down 12% yesterday, it was probably more of a reaction to the statements of the B&N executives than the actual results.
B&N Executives Responses not Helpful:
The terse comments by the leadership of B&N were a surprise. Instead of delivering a strong statement that things will change and that these losses were unacceptable, the statements were more of maintaining the current course and didn’t acknowledge that the past strategy is not working.
“Our top priority in our operating strategy is to increase all categories of our content revenue. We are working on innovative ways to sell content to our existing customers and are exploring new markets we can serve successfully,” said Michael P. Huseby, President of Barnes & Noble, Inc.
This statement …read more
Via: Digital Book World