Barnes&Nobles profits tank

[B.R.Stateham]

I saw in Publishers Marketplace a story reporting B&N suffering thru a 7% decline in 4th quarter profits. And they're expect something a little less than 7% further loss in the immediate future. Yet they are still going to open between 10 and 15 new stores.

I don't know, but it seems to me there is something bascially wrong with this business model. The only way for growth is to constantly open stores--while at the same time, closing stores. Is this the only way to make money? This unending appetite for growth?

What's wrong with the idea of spending money on advertising good books and then turning around and offering a damn good price for a book? What's wrong with the idea of sustainable growth and a profit margin that can sustain the ups and downs of the environment? Sustainable, as I define it, is a business model where the need slightly exceeds the desire to fulfill that need.

Giants can't go on a crash diet and expect to survive. Someone who's constantly lean and trim I believe survives the best.

[Jack Getze]

I think B&N is all for sustainable growth, but the book-buying public isn't going along. They're shopping more online, and spending less dollars in this recession. A huge drop in sales caused the profit decline at B&N. (Border's wishes it made $81 million last quarter).

[I. J. Parker]

Well, with the recent news about bailouts etc., it's becoming pretty clear that big business suffers from greed and syphons the earnings into the pockets of their CEOs.