A Short Fool.com Column [1] takes a look at Borders and Barnes & Noble. Peddling books is a tough business, relying on a relatively small number of best-sellers to grow sales (and competitive forces have forced a lot of margin-killing discounts).
Barnes & Noble hasn't had quite as difficult a time as Borders, although its fourth-quarter net income dipped 9.2% as the competitive climate led to lower margins. However, in contrast to Borders' tidings, Barnes & Noble was able to increase its dividend and said that it will be profitable in the first quarter, even though it's by no means indicating an easy year ahead. It's guiding for annual earnings about flat compared to 2007.