1. The company overpayed for the College booksellers acquisition.
2. The e-book market has no transparency whatsoever.
The first point is really a one-time loss, and the impact should diminish over time.
The second point should be clarified in the next year or so when e-books become more than 10% of BKS revenue and we start getting to see actual sales numbers. Although I sincerely doubt that e-books will ever become more than 10% of Amazon/ Apple/ Google revenues, so investors do have to contend with boogeyman competitors.