On Thursday, Barnes & Noble confirmed significant quarterly losses resulting from what appears to be a sustained dip in Nook tablet sales, particularly during the pivotal 2012 holiday shopping season.
Barnes & Noble today reported fiscal third-quarter losses of $6.1 million, which is down drastically from net earnings of $52 million just one year ago.
At the heart of the problem is the company’s Nook Media unit. It’s down 25.9 percent year-over-year.
The prominent bookseller believes the losses are chiefly due to disappointing Nook device sales and a combination of inventory charges and escalating operating expenses.
Interestingly enough, however, digital content sales actually climbed (+6.8%) year-over-year.
“In terms of the NOOK Media business, we’ve taken significant actions to begin to right size our cost structure in the NOOK segment, while also taking a large markdown on NOOK devices in order to enhance our ability to achieve our estimated sales plans in subsequent quarters,” explains William Lynch, Chief Executive Officer of Barnes & Noble.
“NOOK Media has been financing itself since October of 2012 due to the strong investment partners we’ve been able to attract in Microsoft and Pearson,” Lynch adds. “Coming off the holiday shortfall, we’re in the process of making some adjustments to our strategy as we continue to pursue the exciting growth opportunities ahead for us in the consumer and digital education content markets.”
To review the bookseller’s complete earnings report, click here.