Friday, May 23, 2008

Barnes & Noble Post Loss

The WSJ has a blog post on the muted combination between B&N and Borders. It is really an interview with Politics and Prose owner Carla Cohen. From the interview:
Carla Cohen: We kept one step ahead of the competition. We opened a coffeehouse before Starbucks was on the scene. The model for us was Kramer Books. We’re a much better venue for authors so we’ve never competed with Barnes & Noble on that. We can always do a better job keeping in touch with our customers and keeping publicity out about the events, so we’ve never had to compete. I think our biggest competition is with Amazon makes it easy when people are sitting at their desks — which most of us are during the day — and you read something and go online and order it. You have to be an old-fashioned book-lover to say ‘I’ll wait until the weekend.’ We do get a fair amount of Internet ordering on our Web site with people who are going to pick it up later.

I had to comment on the post which you can read if you follow the link above.

In other B&N news, the company saw a small increase in revenues to $1.16 billion in the first quarter, from $1.15 billion in the year-ago period. Earnings were significantly impacted by an $8mm pretax charge related to sales tax withholding. The company said it lost $2.22 million, or 4 cents per share, in the quarter ended May 3. That compares with a loss of $1.67 million, or 3 cents per share, in the year-ago period. Excluding the charge, the bookseller would have earned 5 cents per share. Same store sales declined slightly in the period.

B&N Conference Transcript: SeekingAlpha

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