Quote:
Originally Posted by jofallon
Nook is a money-losing business, unlike the retail part of BN.
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You sure?
Today's report claims the *dollar* value of B&N's store revenues went up 2.5%.
Not mentioned: the US inflation rate is 3.5%.
So, despite reduced competition with Borders gone (17% of the market last year), despite higher pbook prices, despite adding all sorts of non-book products, and despite 70% higher Nook sales...
Despite all that, B&N stores' revenue in the peak book-selling season *dropped* 1% year-to-year in inflation-adjusted terms.
Does that sound like their B&M retail business is healthy?
Dunno, but to me it sounds like a leaky boat that has the entire crew bailing water like crazy and is still oh-so-slowly sinking. At some point the crew is going to run out of tricks to try.
There is good reason for the investors to freak out.