Looking Past The Obvious To See Why History Will Rhyme: Barnes & Noble Edition
Laughing Water Capital • 15 Comments
Laughing Water Capital • 15 Comments
Wed, Sep. 14, 3:03 PM
Wed, Sep. 14, 2:28 PM
Thu, Sep. 8, 3:32 PM
- Barnes & Noble (BKS -3.6%) founder Leonard Riggio didn't hold back during today's earnings call, saying the retail climate is the worst he has seen in 50 years. Riggio was handling the Q&A with analysts after CEO David Boire was exited last month.
- The B&N Chairman wasn't the first to blame his company's soft patch of sales on the divisive election.
- "The current trend can be traced precisely to the current election cycle, which is unprecedented in terms of the fear, anger and frustration being experienced by the public," stated Riggio.
- "The preoccupation with this election is keeping them in home, glued to their TVs and at their desktops," he added.
- Barnes & Noble's Q2 was headlined by a 6.6% drop in revenue.
- Barnes & Noble earnings call transcript
Thu, Sep. 8, 8:48 AM
- Barnes & Noble (NYSE:BKS) reports retail sales fell 6.1% to $881.7M in Q2. Nook sales were down 24.5% to $41M.
- Comparable sales were down 6% during the quarter to miss the company's expectation.
- Retail-level EBITDA was down sharply due to the lower level of sales.
- B&N says it now expects FY17 comparable store sales to decline at a low single digit rate.
- Previously: Barnes & Noble beats by $0.06, misses on revenue (Sept. 8)
- BKS -5.26% premarket to $11.70 to cut deeply into gains piled up this week after a positive piece on BKS in Barron's.
Thu, Sep. 8, 8:38 AM
Wed, Sep. 7, 5:30 PM
Tue, Sep. 6, 10:03 AM
- Barnes & Noble (NYSE:BKS) is up 7.7% after investors pay some attention to a favorable writeup in Barron's which called out the stock as undervalued.
- Shares of BKS spinoff Barnes & Noble Education (NYSE:BNED) are up almost 2%. The college bookstore chain trades at roughly the mid-point of its 52-week range of $8.15 to $15.49.
- Previously: Barnes & Noble tapped to rally with Death-by-Amazon fears fading (Sept. 5)
Mon, Sep. 5, 11:24 AM
- Barnes & Noble (NYSE:BKS) looks like an appealing value play in the retail sector, according to a weekend profile of the company posted in Barron's.
- The positive spin on the bookstore chain is backed by Craig-Hallum analyst Alex Fuhrman (Buy rating/$17 PT) who notes that the Death-by-Amazon fears are overdone.
- The company's has diversified its revenue mix and a low level of debt makes it a potential target of a larger retailer (Starbucks?).
- SA contributor Nelson Barragan was early to see the upside with BKS, recommending the stock as a long-term buy back in February when shares were still languishing in the single digits.
- B&N by the numbers: Dividend yield 5.20%, price-to-sales 0.2, 2017 price-to-earnings 21.1, 52-week return -27%.
Sat, Aug. 27, 11:34 AM
- Many retailers are tightening up this year by reducing their store count or converting more locations to e-commerce fulfillment centers. Analysts note that although the strategy will lower revenue, over time the group should see improved bottom lines as underperforming stores are cut back and online efficiency improves. Amid the skittish trading with chain store stocks there could be some value deals.
- Store chains that currently trade with a PE ratio below 15 and offer a dividend yield of at least 2% include: TLRD, BKE, SMRT, GPS, AEO, CHS, CATO, TGT, KSS, M, HVT, WSM, PIR, BKS, OUTR, ODP, SPLS.
- ETFs: XLY, XRT, VCR, RTH, RETL, FXD, IYC, FDIS, SCC, RCD, UCC, PMR, JHMC, CNDF.
Tue, Aug. 23, 10:52 AM
- Bookstore sales are up 6.1% through the first six months of the year, according to data from the U.S. Census Bureau.
- Sales at bookstores broke higher last year with a 1.9% gain after six straight years of declines. Adding more categories outside of books at some chains likely helped to push up the revenue tally.
- A subtle shift by consumers away from e-readers to now cool again printed books is also partially behind the resurgence.
- The impact of the development on Barnes & Noble (BKS -0.1%) will be revealed when the company reports earnings on September.
Wed, Aug. 17, 12:45 PM
Wed, Aug. 17, 9:10 AM
- Shares of Barnes & Noble (NYSE:BKS) are on watch after the company shocked with the announcement of the exit of CEO Ronald Boire.
- Gabelli analyst John Tinker says the recent B&N investor conference offered no clue that a change at the top was on the way.
- He notes the challenge of increasing traffic amid the Amazon dominance remains the same for the retail chain no matter who is at the top.
- Gabelli downgraded Barnes & Noble to Hold from Buy following the CEO development.
- Previously: Barnes & Noble ousts CEO Boire, 'not a good fit' (Aug. 16)
Tue, Aug. 16, 4:48 PM
- Barnes & Noble (BKS -1%) has fired CEO Ronald Boire, and Executive Chairman Len Riggio is postponing his retirement in response.
- The company said in a statement that the board "determined that Mr. Boire was not a good fit for the organization and that it was in the best interests of all parties for him to leave the company."
- Riggio was set to retire after the company's annual meeting Sept. 14, but will put that off and help the management team pick up Boire's duties.
- The company says it's immediately beginning a search for a new chief executive.
- Shares are flat in after-hours trading.
Thu, Aug. 11, 9:59 AM
- The retail sector is racking up sizable gains after Macy's set the table with a major store closing announcement (15% of full-line stores).
- Earnings beats at Macy's and Kohl's, along with a surprise upgrade on American Eagle Outfitters (AEO +4.6%) are also helping to boost sentiment.
- Notable gainers include Guess (GES +4.3%), Dillard's (DDS +5.8%), Ascena Retail Group (ASNA +4.6%), Stage Stores (SSI +7.7%), Sears Holdings (SHLD +4.6%), Gap (GPS +3.5%), Abercombie & Fitch (ANF +3.2%), Barnes & Noble (BKS +3.2%), Urban Outfitters (URBN +1.3%), Francesca's (FRAN +2.5%), DSW (DSW +3.5%), Pier 1 Imports (PIR +4%), and Finish Line (FINL +2.4%).
- The S&P 500 Retail ETF (NYSEARCA:XRT) is up 2.1% on the day off the chain store buzz.
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, FXD, IYC, FDIS, SCC, RCD, UCC, PMR, JHMC, CNDF
Thu, Jul. 14, 8:34 AM
- Barnes & Noble (NYSE:BKS) announces it has entered into an exclusive print partnership with Adaptive Studios.
- Adaptive is a content creator and publisher that acquires intellectual property such as unproduced screenplay ideas and scripts, and repurposes it across a range of traditional and digital entertainment platforms including books, film and TV properties, and digital series.
- Through this exclusive partnership, B&N is the only retailer to offer a leading selection of titles online and in stores from from Adaptive Books.
- “We believe that Adaptive Studios offers one of the most innovative and exciting publishing programs we have come across,” said Mary Amicucci, Chief Merchandising Officer, Barnes & Noble.
- Barnes & Noble is offering two exclusive Adaptive Books teen titles starting this month, Air by Ryan Gattis and The Silence of Six (paperback) by E.C. Myers.
- Source: Press Release
Tue, Jul. 12, 9:03 AM
- Barnes & Noble (NYSE:BKS) is showing its pop-up flair with a promotion tied to the Pokémon phenomenon just days after it launched.
- The company is printing a special bonus code on customer receipts of the purchase of Pokémon trading card products that will unlock two "rare" online Pokémon.
- Other retailers are also trying to attract Pokémon game players by using "lures" in the game to entice traffic or by gaming the system by creating user-submitted PokeStops and Pokémon Gyms. For a very low cost (see Pokemon math explained here), restaurants or other stores can purchase the Pokemon GO Lure Module which in the early stage of the game's roll-out has proven to increase traffic.
- The clock is ticking on McDonald's (NYSE:MCD) (which has done Pokémon promotions in the past) and the other large chains to jump into the game before the initial frenzy of action on the streets wears off..
- Add it all up and it's nothing but good news for Nintendo (OTCPK:NTDOY) in the short term. Nintendo ADRs are up 56% since the launch.
- Related ETF: BITE.