No question, Barnes & Noble stock is in trouble
Tom Dougherty, CEO – Stealing Share
20 August 2013
And time is running out
What is wrong with Barnes & Noble stock? If you ask investors, they would tell you the bookseller has lost its importance because the market B&N served has changed. The way it buys and uses books has changed. They would say that Barnes & Noble is a dinosaur.
“I think Barnes & Noble stock still has a whisper of a chance to both survive and prosper but the brand and the brand promise needs a complete overhaul.”
Look at the recent earnings report and you would have to agree. The company reported a net loss of $87 million, or $1.56 per share, for the fiscal first quarter ending July 27. Compare that with a loss of $39.8 million, or 76 cents per share, a year earlier. If you were an options trader, last week was the time to sell Puts.
I think Barnes & Noble stock still has a whisper of a chance to both survive and prosper but the brand and the brand promise needs a complete overhaul. It needs to be less about what you buy (books) and more about why. When Barnes & Noble closes its doors, many of us will mourn the loss of the bookstore experience.
Sadly, we will only miss it when it is gone because Barnes & Noble ‘s brand has no such brand promise and elicits none of that fear. The brand currently is only that of “booksellers.”
Does the Barnes & Noble brand flood you with the distinct and expansive scent of books? Does it fill you with the wonder of discovery that is so pleasant on a rainy Saturday afternoon when, with no particular book in mind, you leisurely discover a gem you did not know you needed?
Barnes & Noble can’t compete on price or selection. The Internet will always have lower prices and a greater selection. But the experience is an emotional difference — not a rational one. Understanding that difference and executing it is how you grow market share. Know what you are good at and become legend.
Quora Tom Dougherty, CEO - Stealing Share 21 August 2018 Quora gets online etiquette right I have long found issue with online public discourse, namely with interactions on Twitter. It seems users can tweet anything outlandish (see: Alex Jones) and it'll be...
Advertising mistake Tom Dougherty, CEO - Stealing Share 20 August 2018 Advertising mistake colors me shocked If you’ve ever been on a TV advertising set, you see the careful craft that goes into everything. No matter how inane the ad might be. That’s why any...
MoviePass Tom Dougherty, CEO - Stealing Share 15 August 2018 MoviePass - the great idea till it wasn’t MoviePass is quickly dying. Its stock is now at five cents a share. It seemed like a great idea. Though, in retrospect, it served only as a great...