Barnes & Noble Posts
Barnes & Noble, Inc. (NYSE:BKS) chairman Leonard Riggio has announced today that he will no longer attempt to buy the company’s bookstores. Barnes & Noble, Inc. (NYSE:BKS) also said that they will stop making their line of Nook color tablets. Riggio announced announced in February that he wants to bid for the company’s 675 physical stores. That would had split the company in half. Riggio did not reveal how much he would pay. The board was unwilling to consider anything short of $1 billion though.
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Barnes & Noble, Inc. (NYSE:BKS) has announced that they are offering major discounts for the Nook HD and Nook HD+ for a one-week sale for Mother’s day. Starting today through May 12 (Mother’s Day), the 7-inch Nook HD will be available starting at $149 (8GB) and the 9-inch Nook HD+ will cost $179 (16GB). Outside of the sale, the Nook HD retails for $199 and the Nook HD+ for $269. The memory on both of these tablets can be expanded through a microSD expansion slot. If you want to get your hands on one these tablets, you can buy them through Barnes & Nobles’ retail locations, nook.com, Target retail stores, and Best Buy retail stores.
Barnes & Noble founder and chairman Leonard Riggio may want to buy out the bookstore company that he founded while still spinning out the Nook tablet division. Riggio owns 30% of Barnes & Noble stock and he has told the board of his interest. However the formal buyout process has not started yet according to sources with Bloomberg.
Barnes & Noble hit around $1.2 billion in revenues during the holiday period, but they will be working on shutting down many of their brick-and-mortar stores over the next decade. The company will be shutting down around 20 stores a year over the next decade according to The Wall Street Journal. This is around one third of their retail stores, which will bring the total down to 450-500 stores according to B&N executive Mitchell Klipper. Barnes & Noble has around 689 retail stores in operation total right now. Klipper says that less than 3% of Barnes & Noble stores are losing money, but they believe that more of their stores will be losing money in the coming years.
Barnes & Noble has announced the numbers for their holiday sales during the nine-week period ended December 29, 2012. These numbers are based on the company’s brick-and-mortar retail stores and the BN.com online transactions. The revenues does not include the sales of the NOOK device or e-books purchased through the Nook Book Store. The company hit $1.2 billion in revenues during that period. This is a 10.9% decline on the same period in the previous year. The reason for the drop is due to an 8.2% a decline in “comparable store sales, store closures and lower online sales.”
Pearson, the British publication company, has invested $89.5 million into the Barnes & Noble NOOK business for a 5% stake. This values the NOOK business at $1.79 billion. This is higher than the $1.7 billion that the company was valued at several months ago. After the investment is received, Barnes & Noble will own 78.2% of the NOOK business.
Barnes & Noble has dropped the price of the Nook Simple Touch. The Simple Touch previously costed $99 and Barnes & Noble dropped the price to $79. The new price was applied on December 9th and it looks like that it will be permanent. This may surge the holiday sales of the Nook Simple Touch. The Simple Touch has a 6-inch touchscreen and uses E Ink technology for reading. The screen has 16 levels of grey and can be read in bright sunlight. The resolution of the device is 800×600 and it has over two months of battery life per charge if you read about half an hour per day. The Simple Touch is available in Barnes & Noble, Walmart, Target, and Best Buy retail stores. You can also buy it from bn.com.