James, from BKS latest 10-Q
The following table summarizes statements of operation information:
13 Weeks Ended 39 Weeks Ended
-------------------------------- ------------------------------
October 31 November 1, October 31, November 1,
1998 1997 1998 1997
-------------- --------------- -------------- -------------
Barnes & Noble Retail Business
Sales $ 656,837 610,826 1,976,320 1,821,922
Operating profit $ 19,633 15,601 52,941 28,635
Earnings (loss) per share $ 0.11 0.05 0.29 (0.01)
barnesandnoble.com
Sales $ 17,236 4,005 39,106 6,388
Operating loss $ (20,472) (5,600) (57,078) (8,091)
Loss per share $ (0.18) (0.05) (0.49) (0.07)
Consolidated Barnes & Noble, Inc.
and Subsidiaries
Sales $ 674,073 614,831 2,015,426 1,828,310
Operating profit (loss) $ (839) 10,001 (4,137) 20,544
Earnings (loss) per share $ (0.07) 0.00 (0.20) (0.08)
Notice a couple of points: the retail business is profitable in non 4-Q quarters,
but it is the e-commerce division that pulls results down. Also, notice that
store rents and occupancy are included in COGS, so this tends to give a distorted
picture concerning margins -- that is, these are not variable costs. They have
significant fixed components included.
As to whether AMZN could go to $700? Sure. It could also go to $3. I don't think
you can time when the greater fool theory players begin to bail out. I think it's a giant
game of musical chairs. Only the pianist knows when the music will stop.
TTFN,
CTC |
