Saturday, March 2, 2013
Barnes & Noble struggling, weighed down by Nook
From Digital Book World -- which reports that the third quarter earnings look awful.
Barnes & Noble booked $2.2 billion in revenue in its third-quarter ending Jan. 26, 2013, a decrease of 8.8% compared to the same period a year ago. The company also swung to a loss of $6.1 million versus a profit $52 million last year.
While the company’s bricks-and-mortar businesses — its nearly 700 retail stores and network of some 600 college bookstores — had a challenging quarter, Barnes & Noble was mostly weighed down by its flagging Nook digital division.
And, to see the full significance of this, bear in mind that Apple's share of the digital market is rising, being currently about 24%
Nook's revenue was down 26% on the same period last year, with a posted loss of $190 million.
But there is no way, it seems, that Nook will be abandoned. Instead, there will be cost-cutting measures. Which, as DBW predicts, means lay-offs in staff.