Looking Past The Obvious To See Why History Will Rhyme: Barnes & Noble Edition
Laughing Water Capital • 15 Comments
Laughing Water Capital • 15 Comments
Jun. 25, 2014, 9:10 AM
Jun. 25, 2014, 8:43 AM
- The board authorizes the separation of Barnes & Noble's retail operation from the NOOK Media business into two separate public companies, and BKS hopes to have this done by 2015 Q1.
- Management sees FY15 comp bookstore sales down in the low-single digits, with college comp sales down a similar amount. EBITDA losses in the NOOK segment are expected to continue to decrease.
- The earnings call is set for 10 ET.
- Shares +9.9% premarket
- Previously: Barnes & Noble misses by $0.13, beats on revenue
Apr. 17, 2014, 12:47 PM
Apr. 3, 2014, 12:45 PM
Apr. 3, 2014, 9:49 AM
- Barnes & Noble (BKS -10.2%) plunges at the open after Liberty Media (LMCA -0.1%) says it is selling the majority of its stake in the bookseller.
- LMCA will retain a 10% stake to allow BKS "greater flexibility" to right itself and will give up its right to have two representatives on the BKS board.
- In 2011, LMCA purchased a 17% stake in BKS, which has struggled to compete in a market increasingly dominated by mobile devices and downloadable data.
Apr. 3, 2014, 9:09 AM
Apr. 2, 2014, 5:38 PM
Mar. 13, 2014, 9:23 AM
- Barnes & Noble (BKS) discloses in a SEC filing that it entered an expanded agreement with Microsoft.
- The companies have agreed to co-brand within the Microsoft Consumer Reader for content delivered by Nook Media.
- Nook Media can stop its efforts to create a Window phone app due to the development.
- SEC Form 8-K
- BKS +1.0% premarket
Feb. 26, 2014, 1:44 PM
- Barnes & Noble (BKS +4.1%) CEO Husney says the company held about 20% of the e-book market, down from two years ago when it was in the 25%-27% range.
- Same-store sales at the company's retail stores were down 0.5% in FQ3 - fairly level with other retail chains for the period. A bright spot was the 12% increase in comp sales for educational toys and games in the quarter.
- On the topic of a bid by G Asset Management, Huseby was downright dismissive. G Asset has "extremely limited" financial means and no equity financing to support its proposal, says the exec.
- Huseby also dissected the job cuts at the Nook business. 190 positions, or 26% of the work force, were slashed through attrition and layoffs.<.li>
- Earnings call transcript
Feb. 21, 2014, 1:43 PM
- G Asset Management has offered to buy a 51% stake in Barnes & Noble (BKS +7%) at a $22/share valuation, or (alternatively) a 51% stake in the Nook division at a $5/share valuation. B&N shares have jumped to the $18 range in response.
- The money manager adds its offer is subject to due diligence and "the obtaining of necessary financing," as well as access to B&N's credit facility and balance sheet cash. It thinks "substantial shareholder value" would be created if the Nook segment was separated from B&N's profitable units.
- Two years ago, G Asset offered to buy B&N's college bookstore business for $460M.
Feb. 10, 2014, 3:55 PM
Jan. 9, 2014, 9:42 AM
- New Barnes & Noble (BKS +2.7%) CEO Michael Huseby gives an early peek at his thinking on what the company should do with Nook in an interview with the WSJ.
- The exec says the company is "dedicated" to providing consumers the digital devices, but notes the company will look to leverage costs with an outside partnership. That last part could mean that B&N is open to letting a consumer electronics manufacturer build the devices for the company.
- Husbey says the ultimate goal is to "de-risk" the business plan.
- Previous: BKS holiday sales.
Dec. 10, 2013, 5:42 PM
Dec. 9, 2013, 9:53 AM
- Shares of Barnes & Noble (BKS +6.7%) take off as a couple of analysts back the company to come out the other side of a SEC probe over accounting in decent shape.
- The somewhat twisted logic is that the company's retail bookstore business may be in even better shape than realized if it's been bearing more Nook-related costs than it should have been.
Dec. 6, 2013, 11:45 AM
- Shares of Barnes & Noble (BKS -5.2%) are under selling pressure after the company discloses it is the subject of a SEC probe on its accounting practices.
- The company was notified on October 13 that the SEC would investigate the restatement of earnings announced on July 29, 2013. A different matter related to allegations of an ex-employee on how IT expenses are reported for Nook and the retail segment will also be looked into.
- SEC Form 10-K
Nov. 26, 2013, 10:10 AM
- It was race by Barnes & Noble (BKS -1.2%) to cut costs as fast as sales dropped off during Q3.
- Though the company managed to improve its gross margin rates as the costs of sales and SG&A expenses fell sharply, investors are latching onto the sales trend more than the profitability swing.
- The drop in Nook revenue (digital and device) wasn't a shocker, but a comp sales falloff of 4.9% at B&N bookstores was a bit wider than analysts forecast.
Barnes & Noble, Inc. provides easy and convenient access to books, magazines, newspapers and other content across its multi-channel distribution platform. The company operates through three operating segments: B&N Retail, B&N College and NOOK. The B&N Retail segment includes the eCommerce... More
Industry: Specialty Retail, Other
Country: United States
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