01-29-2013, 11:30 AM | #31 |
monkey on the fringe
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01-29-2013, 11:34 AM | #32 |
The Dank Side of the Moon
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Without spirals there are no pinwheels
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01-29-2013, 11:38 AM | #33 |
monkey on the fringe
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Without comprehension, keovcmn djj tegwk dkwofk wjlxa zux!
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01-29-2013, 12:31 PM | #34 |
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See, that is a big leap.
Digital books aren't taking over 100% of the market. So far, it's 50% in most genres with some expectations of 60% in the near future. So there will be likely always be a market for pbooks. The problem is how *big* a market and for what kinds of books? And that the most profitable parts of the market are what's moving to digital and what remains may not be enough to support B&N in the "style they've become accustomed to", as they say in divorce court. The bulk of the profits for the big stores has traditionally come from the high volume bestsellers and genre fiction. Once the general retailers started undercutting everybody that left genre sales as the source of volume. That is where ebooks hurt pbook retailing: in sucking out the volume and reducing the revenue per square foot of the big stores. With lower volumes of books, B&N tried using floorspace for other, non-book products. So far, that isn't working. And it seems to be annoying at least some customers. The next logical step is to reduce floorspace altogether, to match the expected volume of pbook sales. But that is easier said than done because of the leases. The exact same problem that sunk Borders. What they need to do is close as many big stores as possible while at the same time opening much smaller stores. Basically, over the last ten years B&N zigged when they should've zagged; they shut down the B.Dalton mall stores when they should have been modernizing and expanding the chain instead of the big warehouses, which they should have been shutting down. Hindsight is 20-20, of course. |
01-29-2013, 01:50 PM | #35 |
Wizard
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01-29-2013, 01:51 PM | #36 |
Wizard
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01-29-2013, 02:58 PM | #37 | |
Is that a sandwich?
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Quote:
Yes, less than 20 stores lost money and their EBITDA was $312 million. |
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01-29-2013, 04:38 PM | #38 | |
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And it is a meaningless figure anyway. They have to pay tax, they can't just ignore it and hope it goes away. That was 22 million in 2013Q1. Even taking all the nasty bits out, the figures are still pretty poor: Code:
13 weeks ended 13 weeks ended July 28, 2012 July 30, 2011 -------------------- --------------- Sales $ 1,453,507 1,418,404 Cost of sales and occupancy 1,039,619 1,030,846 --------- --------- Gross profit 413,888 387,558 --------- --------- Selling and administrative expenses 410,055 411,118 They are paddling as hard as they can just to stay still, even if you strip out everything else. Adding in everything else, they lost just shy of $41 million for the quarter. To put it another way, cost of sales was 71.5% of revenue. Overhead was 28.2%. That adds up to 99.7%. EBITDA is basically rounding error at this point. Code:
Percentage of sales: Sales 100.0 % 100.0 % Cost of sales and occupancy 71.5 % 72.7 % --------- ---- --------- ---- Gross profit 28.5 % 27.3 % --------- ---- --------- ---- Selling and administrative expenses 28.2 % 29.0 % Depreciation and amortization 4.0 % 3.9 % --------- ---- --------- ---- Operating loss -3.7 % -5.6 % Interest expense, net 0.6 % 0.7 % --------- ---- --------- ---- Loss before taxes -4.3 % -6.3 % Income taxes -1.5 % -2.3 % --------- ---- --------- ---- Net loss -2.8 % -4.0 % Last edited by murraypaul; 01-29-2013 at 04:45 PM. |
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01-29-2013, 06:42 PM | #39 | |
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Neither of those companies you listed are "dying" industries, though. On top of that, none of them were subject to so many years of ineffective management. Barnes and Noble has been in trouble for a very, very long time, and it's never gotten better. People talk about a "death spiral" because it's just the way, the trend, that has been happening. I think the store closures are overstated, of course. Companies close stores all the time, and I think they're actually opening 15 as well. |
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01-29-2013, 06:55 PM | #40 | |
Wizard
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02-01-2013, 03:25 PM | #41 |
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