Nook Sales Slip In Latest Quarter
Barnes & Noble reported sales of its Nook devices fell in the quarter ending July 28, even as overall revenue rose 2.5% to $1.45 billion. While sales of digital content sold through Nook increased 46%, total Nook sales, including its e-reading devices, dipped to $191 million from 191.4 million a year ago.
The biggest U.S. bookstore chain said Nook sales had declined because of reduced prices and its inability to meet demand for the Nook Glowlight model, which allows users to read in the dark. Barnes & Noble has an estimated 25% to 30% of the country's e-book market.
The company reported a net loss in the quarter of $41 million, or 78 cents a share, down from $56.6 million, or 99 cents, in the year-earlier period. Analysts had expected a loss of 98 cents a share.
Barnes & Noble said Monday it plans to open a Nook online storefront in the U.K. in mid-October. Earlier this month it also lowered the prices of the Nook Color and Nook Tablet devices to better compete with rivals such as Amazon and Google in the tablet market.
Microsoft in April invested $300 million in a new Barnes & Noble venture, tentatively dubbed Newco, that will merge the bookseller's digital and college businesses. The company said Tuesday that it's “actively engaged' in the formation of Newco, and expects the Microsoft deal to close this fall.