I posted about B&N a couple weeks ago here http://jimthewriterb.wordpress.com/2011/08/19/bn-receives-204-million-investment/
It was big news about this investment and in reality, it shows the value of ebooks and what the future will hold.
B&N posted their first quarter earnings today. The obvious was stated – store sales and down and ebooks are up.
But they also posted a lost of $57 million.
Ut-oh, a loss? How bad was this investment? Will they exist? Okay, everyone, take a breath. B&N will take time to get back to a profitable state and the investors know this.
To prove my point, I dug a little deeper. I looked at last years first quarter statement.
And guess what?
The loss was $62.5 million.
So, while B&N had a loss, they sort of had a gain. They chopped down their loss compared to last years quarter. That’s pretty cool in my book. I can’t say what will happen for B&N forever, but it seems they have a focus now. Not to mention money from their investment. I’d like to see them rescue their store sales, but I don’t know how they’ll do it. If stores start closing, I don’t think it’ll be the last stand for B&N, but it will hurt all around.
Oh, and remember when the stock price touched $10? Close to the 52 week low. People were worried. Guess what? Closing today, B&N’s stock price sits at $13.13. That’s a nice little gain. Good for B&N – I hope they keep it up.