Profile: Barnes & Noble Inc (BKS.N)

Barnes & Noble, Inc. (Barnes & Noble), incorporated in 1986, is a bookseller. The Company is a content, commerce and technology company that provides customers access to books, magazines, newspapers and other content across its multi-channel distribution platform. As of April 28, 2012, it operated 1,338 bookstores in 50 states, 647 bookstores on college campuses, and operates one of the Web eCommerce sites, and develops digital content products and software. Barnes & Noble operates in three segments: B&N Retail, B&N College and NOOK. The Company’s principal business is the sale of trade books (generally hardcover and paperback consumer titles), mass market paperbacks (such as mystery, romance, science fiction and other popular fiction), children’s books, eBooks and other digital content, NOOK and related accessories, bargain books, magazines, gifts, cafe products and services, educational toys & games, music and movies direct to customers through its bookstores or on barnesandnoble.com.

Of the Company’s 1,338 bookstores, 691 operate primarily under the Barnes & Noble Booksellers trade name. Barnes & Noble College Booksellers, LLC (B&N College), a wholly owned subsidiary of Barnes & Noble, operates 647 college bookstores serving nearly 4.6 million students and faculty members at colleges and universities across the United States. barnesandnoble.com llc (Barnes & Noble.com) encompasses one of the Web’s largest eCommerce sites, Barnes & Noble eBookstore, Barnes & Noble eReader software, and the Company’s devices and other hardware support. Through Sterling Publishing Co., Inc. (Sterling or Sterling Publishing), the Company is a general trade book publisher.

B&N Retail

The B&N Retail segment also includes the Company’s publishing operation, sterling publishing. As of April 28, 2012, the Company had 691 bookstores, primarily under the Barnes & Noble Booksellers trade name. These stores generally offer a NOOK Boutique/Counter, a cafe, a children’s section, an educational toys and games department, a digital video disc (DVDs)/BluRay department, a gift department, a music department, a magazine section and a calendar of ongoing events, including author appearances and children’s activities. The Company’s B&N Retail segment purchases physical books on a regular basis from over 900 publishers and over 50 wholesalers or distributors. In addition, there are over 500 titles in the Barnes & Noble Classics and its Library of Essential Reading series. Barnes & Noble stores range in size from 3,000 to 60,000 square feet depending upon market size, with an overall average store size of 26,000 square feet.

Sterling Publishing is a publisher of non-fiction trade titles. It is a range of non-fiction and illustrated books and kits across a range of imprints, in categories, such as health and wellness, music and culture, food and wine, crafts and photography, puzzles and games, history and current affairs, as well as a children’s books.

B&N College

B&N College sells new and used textbooks in campus bookstores and online. As of April 28, 2012, B&N College operated 647 stores nationwide serving nearly 4.6 million students and faculty members. The Company’s customer base, which is mainly consisted of students and faculty, can purchase various items from their campus stores, including textbooks and course-related materials, emblematic apparel and gifts, trade books, eReaders, school and dorm supplies, and convenience and cafe items.

As of April 28, 2012, B&N College operates 613 traditional college bookstores and 34 academic superstores, which are generally larger in size, offer cafes and provide a sense of community that engages the surrounding campus and local communities in college activities and culture. The traditional bookstores range in size from 500 to 48,000 square feet. The academic superstores range in size from 8,000 to 75,000 square feet. B&N College’s three customer constituencies are students, faculty members and campus administrators.

NOOK

This segment includes the Company’s digital business, which includes the Company’s eBookstore, digital newsstand and sales of NOOK devices and accessories to third party distribution partners, as well as to B&N Retail and B&N College. Additionally, this segment includes the development and support of the Company’s NOOK product offerings.

NOOK produces a number of different eReaders, including NOOK Tablet, NOOK Color, NOOK Simple Touch and NOOK Simple Touch with GlowLight. Barnes & Noble’s NOOK eReading software provides customers the ability to purchase digital content and access to their Lifetime Library on a range of digital platforms, including iPad, iPhone, iPod touch, Android smartphones and tablets, as well as PC and Mac laptops or full-sized desktop computers. Barnes & Noble has implemented features on its digital platform to ensure that customers have a seamless experience across their devices.

The Company competes with Borders Group, Inc., Books-A-Million, Waldenbooks, Amazon.com, Apple, Costco, Target, Wal-Mart, Follett and Chegg.com.