Tuesday, June 29, 2010

Barnes & Noble Too Late Too Little

Barnes & Noble (BKS) announced big revenue increases resulting from digital sales. Management has seen the light and is aggressively pursuing the digital option. Read this snippet from the boss.

William Lynch, chief executive officer of Barnes & Noble, Inc. “In light of the exciting digital opportunity before us, we are planning to redirect a significant portion of our financial resources towards investments in technology, sales and marketing. These investments will impact our bottom line in 2011, but we believe they will enable Barnes & Noble to capitalize on the significant mid-to-long-term growth opportunities presented by the digital markets.”

They are promising red ink chasing an opportunity they are ill prepared for. They have substantial bricks and mortar infrastructure and do not break out comparable divisional costs.

Nothing compelling about the too late me too management style.

Disclosure: No position in any stocks mentioned in this post.