Barnes and Noble has announced that they have had a dramatic decrease in Nook sales and sales have plummeted 40% in their last quarter. The Bookseller has also scraped their plans to spin the Nook division into its own company and has decided to keep the business in-house.
Barnes and Noble just issued a press release that breaks down the 4th quarter results, but also gives us prospective on how they did during the entire year.
The NOOK segment (including digital content, devices and accessories) had revenues of $52 million for the 4th quarter and $264 million for the full year, decreasing 39.8% for the quarter and 47.8% for the year. Device and accessories sales were $13 million for the quarter and $86 million for the full year, declining 48.2% and 66.7%, respectively, due to lower unit selling volume. Digital content sales were $40 million for the quarter and $177 million for the full year, declining 36.5% and 27.8%, respectively, due primarily to lower device unit sales.
Barnes and Noble once had plans to sell one million Samsung Galaxy 4 Nook tablets, and it looks like according to these figures it might be a pipe dream. Additionally their market share for e-books have fallen from double digits in the US to single digits. A few weeks ago the bookseller announced they closed their Luxembourg head office in Europe and ceased all future plans for international expansion.
I cannot say I am surprised about this latest figures, the constant decline in sales of hardware and digital content is unending. Normally when companies see a decline of 1-3% it is a big deal, but Barnes and Noble consistently reports loses of double digits, every quarter, without fail.