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Barnes & Noble, Inc.’s (Barnes & Noble or the Company)
fiscal year is comprised of 52 or 53 weeks, ending on the
Saturday closest to the last day of April. As used in this
section, “fiscal 2013” represents the 52 weeks ended April
27, 2013, “fiscal 2012” represents the 52 weeks ended April
28, 2012 and “fiscal 2011” represents the 52 weeks ended
April 30, 2011.
GENERAL
Barnes & Noble, one of the nation’s largest booksellers,1
is a leading content, commerce and technology company
providing customers easy and convenient access to books,
magazines, newspapers and other content across its multi-
channel distribution platform. As of April 27, 2013, the
Company operated 1,361 bookstores in 50 states, including
686 bookstores on college campuses, and operates one of
the Web’s largest eCommerce sites and develops digital
reading products and operates one of the largest digital
bookstores. Given the dynamic nature of the book indus-
try, the challenges faced by traditional booksellers, and
the robust innovation pipeline fueling new opportunities
in hardware, software and content creation and delivery,
Barnes & Noble is utilizing the strength of its retail foot-
print to bolster its leadership in selling content to drive
sales across its multiple channels.
Of the 1,361 bookstores, 675 operate primarily under the
Barnes & Noble Booksellers trade name. Barnes & Noble
College Booksellers, LLC (B&N College) operates 686
college bookstores at colleges and universities across the
United States. Barnes & Noble Retail (B&N Retail) oper-
ates the 675 retail bookstores and includes the Company’s
eCommerce site. B&N Retail also includes Sterling
Publishing Co., Inc. (Sterling or Sterling Publishing), a
leader in general trade book publishing. The NOOK seg-
ment represents the Company’s digital business, offering
digital books and magazines for sale and consumption
through the web, NOOK® reading devices and reading
software for iOS, Android and Windows. The Company
employed approximately 34,000 full and part-time
employees as of April 27, 2013.
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
1 Based upon sales reported in trade publications and public filings.
and other digital content, textbooks and course-related
materials, NOOK®2 and related accessories, bargain books,
magazines, gifts, emblematic apparel and gifts, school and
dorm supplies, café products and services, educational toys
& games, music and movies direct to customers through its
bookstores or on barnesandnoble.com. The Company also
offers a textbook rental option to its customers, electronic
textbooks and other course materials through a proprietary
digital platform (NOOK Study™). The Company offers
its customers a full suite of textbook options—new, used,
digital and rental.
To address dynamic changes in the book selling industry,
Barnes & Noble has been transforming its business from
a store-based model to a multi-channel model centered
on its retail stores, Internet and digital commerce. The
Company offers readers the option of store visits, eCom-
merce, and digital delivery of books to devices of their
choosing, including the award winning NOOK® eReaders.
Barnes & Noble’s strategy is to:
•utilize the strong Barnes & Noble brand and retail foot-
print to attract customers to its multi-channel platform;
•expand its distribution channels through strategic
partnerships with world-class hardware and software
companies and retail partners;
•drive content sales through the web, NOOK® Readers and
3rd party devices;
•use its infrastructure to deliver digital content to cus-
tomers; and
•continue to grow campus partnerships including store
locations and students served while continuing its
investment in the digital higher education business
The Company has a multi-channel marketing strategy that
deploys various merchandising programs and promotional
activities to drive traffic to both its stores and website.
At the center of this program is the Company’s website,
barnesandnoble.com.
2
Any reference to NOOK® include the Company’s NOOK 1st Edition™,
NOOK Wi-Fi 1st Edition™, NOOK Color™, NOOK Simple Touch™,
NOOK Tablet™, NOOK Simple Touch with GlowLight™, NOOK® HD and
NOOK® HD+ eReader devices, and each of which include the trademark
symbol (® or ™, as applicable) even if a trademark symbol is not
included.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
8 Barnes & Noble, Inc.