Cost cutting gives Barnes & Noble Inc (NYSE:BKS) reduced losses


Barnes & Noble Inc (NYSE:BKS) the most popular book chain in the U.S is experiencing a downfall in its shares of estimated $1.56 for every share. After the company decided to discontinue it’s their regular Nook e-reader panel, this great dive reduced to 56 cents per share.

Barnes & Noble Inc (NYSE:BKS) investors have been increasingly pushing the company to spend more in potentially profitable plans and to finish off the investments which are not giving them a good return. It has come to appoint where its investors are discouraging the company to further add more money into this digital plan that is resulting in a major loss. Items such as gifts, home goods like throw blankets, cushion covers, candles and bookends were made part of the commodities sold at Barnes & Noble Inc (NYSE:BKS) as a change in direction.

Many market analysts have predicted a positive impact of this change on the Barnes & Noble (NYSE:BKS) shares’ market value. According to John Tinker, at Maxim Group LLC the shares have improved and that more people should opt to invest in them. This improvement in shares has been noted to be almost 57% after the company’s decision to invest in a much newer and larger project with a total time span of 12 months.

Excluding the Nook, let’s look at the numbers again, the company’s revenue proceeds fell 7%, estimated to be standing at $1.24 billion now. Breaking down this total, 5.3% decrease came from the bookstore and the rest of it was from same store sales figures. Comparable-store sales excluding the nook figures were recorded at approximately 0.4%. Thus all in all, the company has begun to stabilize after separating nook and trying to find the right company from the existing and potential partners. The nook depression was estimated to be 54% within its revenue numbers and almost 24% in the content sales.


Barnes & Noble (NYSE:BKS) has decided not to make major investments in the Nook division but still they are opting to make further IT improvements like Yuzu. Yuzu is modern technology that is being introduced catering to the college sphere. It is the next generation educational platform that enhances every day educating experience by making educational events more rewarding and fruitful. For Barnes & Noble Inc (NYSE:BKS) the costs spent on this technology is towards growth but is the number too substantial? It is anticipated that many Yuzu has great growth potential and positive results can be derived. The company on the other hand is asking itself this question that how much price we have to pay for this potential growth and is it really worth the financial input, striking this balance will be key.

William’s lynch exit from the company was the result of constant loss in the Nook sales reported Huseby the long time cable executive who now is associated with Barnes and Noble (NYSE:BKS). He has been part of Barnes & Noble Inc (NYSE:BKS) since one and a half years only and has already been working with two giants; Samsung Electronics Co. (KRK:005930) and Google Inc! (NASDAQ:GOOGL)