Quote:
Originally Posted by HarryT
A $74m loss on $7bn turnover isn't too terrible. It'll be wiped out by turning just 1% more of that turnover into profit.
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They need to do considerably better than that to stabilise the company. With same store retail sales growing 3%, and same store college stores declining 3% annually, the only way to increase "turnover into profit" is by cutting costs in meaningful, structural ways. That is much harder to do than it sounds when an industry is already in serious decline.
One thing is reasonably certain: B&N's status at June 2012, and its prospects at that time, are likely to look considerably different than they do today. Better or worse? That's the hard part to predict.