The problem of Barnes & Noble is more than Amazon

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At a time when retailers reported positive sales and quarterly results, Barnes & Noble's results were insufficient. – but do not blame Amazon.

The largest American bookstore said Thursday that sales fell 6.9% to $ 795 million in the quarter ended July 28, penalized by declines in both retail and electronic readers Nook. Same-store sales fell 6.1%, continuing a series of five and a half year declines. In fact, according to Retail Metrics data, Barnes & Noble's comparable sales have declined over the last 20 quarters, as opposed to quarterly gains by the retail sector.

The loss of Barnes & Noble in the last quarter was $ 17 million, compared to $ 10.8 million a year earlier. The results did not get worse in part because the company reduced its expenses.

Its long-term debt level has more than doubled, from $ 84.1 million to $ 178.7 million, another worrying sign, despite the fact that

Barnes & Noble
In July, it extended its existing credit line by $ 750 million until July 2023. The company also operates without a CEO after the dismissal of Demos Parneros, who has since sued the company in a fierce fight .

Barnes & Noble's stock fell nearly 7% to $ 4.62 in trading session, against a peak of more than $ 30 in 2006.

Although it's easy to blame Barnes & Noble's problems

Amazon.com
, the fact is that the book industry has been on a roll. According to the American Booksellers Association, a trade group representing independent bookstores, the August 6 year-to-date sales rose 5% among its member sellers.

A visit to Barnes & Noble's New York flagship store in Union Square could give you hints. The CD and DVD sections, which still occupy much of the store space, are often empty and unhelpful every time I visit, most recently on Wednesday night. The same goes for the Nook area, which, despite the display of some Nook devices, has mostly been occupied by a series of other items such as yoga mats and Brookstone weighted blankets.

Elsewhere in the store, besides the bestsellers, signed copies and books categorized are examples of different goods: newspapers, toys, candles and sets of diffusers, tea and chocolate selections. In the children's area, backpacks and other school items were marked 50% on the extended toy aisles. Coffee traffic also showed little sign of helping to generate sales elsewhere in the store. At the end of the visit, one could not help wondering: what does Barnes & Noble represent and what does he want to be?

"Our biggest opportunity to drive sales is to drive traffic to stores and convert it into sales," Tim Mantel, marketing manager, said Thursday. "We focus on improving the customer experience to create excitement and stimulation."

As demand for the Nook continues to decline, Barnes & Noble removes the Nook device at the front of the stores. Its share in the eBook reader market has fallen to 2.1%, compared to 84% for Amazon Kindle, and Kobo, which feeds Walmart's recent incursions, holds a 13% share, according to Euromonitor.

The company is also updating stores and shelves to better show customers where things are, Mantel said. To generate traffic, Barnes & Noble hosts in-store reading clubs. Her in-store events at Union Square this month include hosting, for example, actors Sally Field and Neil Patrick Harris.

Late compared to many other retailers, Barnes & Noble introduced the online order for in-store pickup only last quarter. What the company described as a problem ultimately hurt sales early in the quarter. President Len Riggio said that good online publishing is a top priority.

"For many years, the company has not lived up to expectations with our online component" and with the integration of retail stores and online activities, he said during the call. "We are not alone. There is a chasm between the two. We now have a team in place. … The site generates more traffic to the stores. This is a big must. We must get there.

Despite some positive reviews and hoping this will help boost store traffic, he also said the question of whether Barnes & Noble would expand its in-store restaurant openings, currently at five, remains a big question.

"We do not have a restaurant operating culture and no experience in the hospitality industry, such as controlling the costs of food and wages," he said. adding that sales are good,

Barnes & Noble, which currently operates 629 stores in all 50 states, also designs stores that represent less than a third to half its current average of 25,000 square feet. roots, with a focus on books. "

Except that reimagining is still a big though. While Barnes & Noble has maintained its adjusted earnings guidance for the year and expects sales to return positive this holiday season, one analyst expressed skepticism about the call. Management has recognized that its predictions depend on many things that work together.

"I love to grow and build stores," Riggio said. "I hope we can prove to ourselves and our shareholders that we can still grow. … We want to stop the bleeding with respect to comparable store sales.

While Barnes & Noble visitors appreciate being able to see book walls in a physical store, nostalgia can only deliver so much. To grow again, Barnes & Noble still has a lot to do.

About Forbes: Why Walmart Embarks on E-Books, a Declining Business

About Forbes: Why is Best Buy still relevant in the Amazon era?

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At a time when retailers reported positive sales and quarterly results, Barnes & Noble's results were insufficient. – but do not blame Amazon.

The largest American bookstore said Thursday that sales fell 6.9% to $ 795 million in the quarter ended July 28, penalized by declines in both retail and electronic readers Nook. Same-store sales fell 6.1%, continuing a series of five and a half year declines. In fact, according to Retail Metrics data, Barnes & Noble's comparable sales have declined over the last 20 quarters, as opposed to quarterly gains by the retail sector.

The loss of Barnes & Noble in the last quarter was $ 17 million, compared to $ 10.8 million a year earlier. The results did not get worse in part because the company reduced its expenses.

Its long-term debt level has more than doubled, from $ 84.1 million to $ 178.7 million, another worrying sign, despite the fact that

Barnes & Noble
In July, it extended its existing credit line by $ 750 million until July 2023. The company also operates without a CEO after the dismissal of Demos Parneros, who has since sued the company in a fierce fight .

Barnes & Noble's stock fell nearly 7% to $ 4.62 in trading session, against a peak of more than $ 30 in 2006.

Although it's easy to blame Barnes & Noble's problems

Amazon.com
, the fact is that the book industry has been on a roll. According to the American Booksellers Association, a trade group representing independent bookstores, the August 6 year-to-date sales rose 5% among its member sellers.

A visit to Barnes & Noble's New York flagship store in Union Square could give you hints. The CD and DVD sections, which still occupy much of the store space, are often empty and unhelpful every time I visit, most recently on Wednesday night. The same goes for the Nook area, which, despite the display of some Nook devices, has mostly been occupied by a series of other items such as yoga mats and Brookstone weighted blankets.

Elsewhere in the store, besides the bestsellers, signed copies and books categorized are examples of different goods: newspapers, toys, candles and sets of diffusers, tea and chocolate selections. In the children's area, backpacks and other school items were marked 50% on the extended toy aisles. Coffee traffic also showed little sign of helping to generate sales elsewhere in the store. At the end of the visit, one could not help wondering: what does Barnes & Noble represent and what does he want to be?

"Our biggest opportunity to drive sales is to drive traffic to stores and convert it into sales," Tim Mantel, marketing manager, said Thursday. "We focus on improving the customer experience to create excitement and stimulation."

As demand for the Nook continues to decline, Barnes & Noble removes the Nook device at the front of the stores. Its share in the eBook reader market has fallen to 2.1%, compared to 84% for Amazon Kindle, and Kobo, which feeds Walmart's recent incursions, holds a 13% share, according to Euromonitor.

The company is also updating stores and shelves to better show customers where things are, Mantel said. To generate traffic, Barnes & Noble hosts in-store reading clubs. Her in-store events at Union Square this month include hosting, for example, actors Sally Field and Neil Patrick Harris.

Late compared to many other retailers, Barnes & Noble introduced the online order for in-store pickup only last quarter. What the company described as a problem ultimately hurt sales early in the quarter. President Len Riggio said that good online publishing is a top priority.

"For many years, the company has not lived up to expectations with our online component" and with the integration of retail stores and online activities, he said during the call. "We are not alone. There is a chasm between the two. We now have a team in place. … The site generates more traffic to the stores. This is a big must. We must get there.

Despite some positive reviews and hoping this will help boost store traffic, he also said the question of whether Barnes & Noble would expand its in-store restaurant openings, currently at five, remains a big question.

"We do not have a restaurant operating culture and no experience in the hospitality industry, such as controlling the costs of food and wages," he said. adding that sales are good,

Barnes & Noble, which currently operates 629 stores in all 50 states, also designs stores that represent less than a third to half its current average of 25,000 square feet. roots, with a focus on books. "

Except that reimagining is still a big though. While Barnes & Noble has maintained its adjusted earnings guidance for the year and expects sales to return positive this holiday season, one analyst expressed skepticism about the call. Management has recognized that its predictions depend on many things that work together.

"I love to grow and build stores," Riggio said. "I hope we can prove to ourselves and our shareholders that we can still grow. … We want to stop the bleeding with respect to comparable store sales.

While Barnes & Noble visitors appreciate being able to see book walls in a physical store, nostalgia can only deliver so much. To grow again, Barnes & Noble still has a lot to do.

About Forbes: Why Walmart Embarks on E-Books, a Declining Business

About Forbes: Why is Best Buy still relevant in the Amazon era?