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Thursday, 3 January 2013 - Barnes & Noble retail revenue falls, sells fewer Nooks |
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See the best of Reuters photography.  See more | Photo caption  Hugh Hefner's girlfriends Hugh Hefner marries Crystal Harris, his one-time "runaway bride" who followed through this time.  Slideshow  Kanye and Kim Kanye West and Kim Kardashian are expecting a child.  Slideshow  Barnes & Noble retail revenue falls, sells fewer Nooks Tweet Share this Email Print Related News What fiscal cliff? Shoppers shrug off budget debate Wed, Jan 2 2013 Wall Street ends sour week with 5th straight decline Fri, Dec 28 2012 Pearson to buy stake in Nook, Barnes & Noble shares up Fri, Dec 28 2012 U.S. retailers scramble after lackluster holiday sales Wed, Dec 26 2012 Retailers hope late Christmas shoppers bring good cheer Mon, Dec 24 2012 Analysis & Opinion Three tech predictions for 2013 The best of the year in review! Related Topics Tech » Media » iPad » Black Friday » The Nook Tablet is seen during a demonstration at the Union Square Barnes & Noble in New York, November 7, 2011. Credit: Reuters/Shannon Stapleton By Phil Wahba Thu Jan 3, 2013 9:45am EST (Reuters) - Barnes & Noble Inc on Thursday reported a sharp drop in revenue in its Nook business as it sold fewer e-readers and tablets at its own stores. The bookseller, which also saw fewer shoppers come in to its bookstores, has bet heavily on its Nook business, which includes e-readers and tablets as well as digital books, as a source of growth. But the Nook segment saw revenue fall 12.6 percent from a year earlier during the nine weeks ended December 29 as it cut prices to compete with Amazon.com Inc's Kindle and Apple Inc's iPad. "Clearly what management is trying to do is buy market share, expecting digital content to drive profits," said Morningstar analyst Peter Wahlstrom. But the facts that unit sales fell and that digital content sales rose 13.1 percent, a far slower pace than earlier in the year, raise questions about Nook's longer-term prospects against Kindle, Wahlstrom said. Nook sales got off to a strong start over the Black Friday weekend, which follows Thanksgiving and kicks off the holiday season in earnest. But for the rest of season they were weak, and Chief Executive William Lynch said in a statement that Barnes & Noble is "examining the root cause" of the shortfall and will adjust its strategy. Barnes & Noble, which had enjoyed a sales bump after onetime rival Borders Group liquidated in 2011, reported a 10.9 percent decrease in sales at its bookstores and on its website over the holiday period. Sales at stores open at least 15 months fell 3.1 percent, excluding Nook products. The retailer still expects Nook segment sales of $3 billion this fiscal year, keeping a forecast it gave in October. The results follow a warning from Barnes & Noble in a filing last week that holiday sales would come in below its expectations. The company will report full quarterly results in late February. Last week, the company also announced that British education and media publisher Pearson Plc would take a 5 percent stake in Barnes & Noble's Nook Media unit for $89.5 million. Shares were down 0.3 percent at $14.48 in early trading. (Reporting by Phil Wahba in New York; editing by John Wallace and Nick Zieminski) Tech Media iPad Black Friday Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. 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