Barnes & Noble struggles with comps in the second quarter

I don't think so. Barnes & Noble, while arguably the big-brand giant of the brick-and-mortar book chains, did not report a good same-store sales number. Comps decreased almost 7%. Total sales, by the way, went down 5%.

Those stats are troubling. They indicate a problem with the company's ability to get people into its stores and to then get them excited about reading. Hey, it's a tough time for books, I'll grant you that. Competition from a multitude of mediums such as the web, video games, a billion cable channels, digital-music players, and so on, is not an easy thing for the printed word. This point has been made before, of course. Believe me, it will be made again unless Barnes & Noble's management can figure something out. New marketing campaigns are needed, obviously. However, the press release indicates a focus on cash flow as part of an overall plan for navigating the tough times, so I'm not sure if a significant amount of money will be spent on unique promotional campaigns in the near future. Barnes & Noble should use the media to remind people of the traditional image of books: i.e., their association with high intellectual thought and a curious pursuit of knowledge.

Shares of Barnes & Noble closed down over 3% on the Q2 news. The logic of the bearish reaction is completely justified. I wouldn't want to speculate here, even though the general sentiment of the current bullish marketplace might take the stock higher in the months to come. I'll look elsewhere for potential investments...

Disclosure: I don't own any company mentioned; positions can change without notice.