In its fiscal Q1 2012 earnings report released Tuesday, Barnes & Noble announced that digital sales were up 37% compared to this time last year, but it wasn’t enough to make up for a loss in store sales.
Store sales declined 3% to $1 billion for the quarter. Sales from BN.com now account for approximately 17% of B&N’s total revenues at $198 million.
The company attributes the increase to strong demand for the Nook Color and the recently launched Nook Simple Touch Reader, as well as a quadruple increase in digital content sales over the same period last year.
Nook-related sales (which includes sales both online and in stores) increased 140% to $277 million. In its last earnings report in June, CEO William Lynch said that B&N owns approximately 27% of the ebook market.
The company reported an overall net loss of $57 million — an improvement from the $62.5 million loss it reported in fiscal Q1 2011, but a substantial loss nevertheless.
B&N CEO William Lynch said he expects digital sales growth to exceed the growth of investment spend for the first time this year.