Barnes & Noble reported a bigger than expected drop in sales and loss of more than $14 million for its most recent quarter. Bobbi Rebell reports.
The read on Barnes & Noble's sales: not good. The country's top book retailer reported a bigger than expected drop in sales and loss of more than $14 million for its most recent quarter. Adding to the pain: it expects full-year comparable sales to fall. The stock knocked down on the news. But Tom Kee, who runs Stock Traders Daily, sees an opportunity. (SOUNDBITE) THOMAS KEE, PRESIDENT & CEO, STOCK TRADERS DAILY (ENGLISH) SAYING: "The stock, although it has had declining revenues, and although it has had declining earnings, also trades on par with its net asset value, which makes that a very interesting story, and an upside proposition for the stock itself." But he warns the math only works if Barnes & Noble can stabilize sales and earnings. The chain, which has 640 locations, has been trying to attract shoppers by offering merchandise such as toys and craft brewing kits. But Barnes & Noble's biggest challenge is competition from online retailers, like Amazon.