Tuesday morning Barnes and Noble
reported earnings for fiscal Q1 2014, and while a majority of analysts expected a loss, it was larger than expected. Net loss for the three months ended July 27 totaled $87 million, compared to a loss of $39.8 million in the prior year.
The NOOK business (which includes NOOK devices, accessories and digital content) didn't do too well either. Total revenues fell to $153 million (that's 20 percent less than last year). Revenue in device and accessories sales decreased by 23 percent, while revenue in digital content sales declined by almost 16 percent. B&N was able to make up some of the losses by reducing expenses.
On the positive side, the company noted that it intends to continue its NOOK business and that it plans to launch a new NOOK device this fall.
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“Our top priority in our operating strategy is to increase all categories of our content revenue. We are working on innovative ways to sell content to our existing customers and are exploring new markets we can serve successfully,” said Michael P. Huseby, President of Barnes & Noble, Inc. and Chief Executive Officer of NOOK Media. “The company intends to continue to design and develop cutting-edge NOOK black and white and color devices. We will continue to offer our award-winning line of NOOK products including NOOK Simple Touch®, NOOK Simple Touch® with Glow Light®,NOOK® HD and NOOK® HD+ at the best values in the marketplace. At least one new NOOK device will be released for the coming holiday season and further products are in development. All NOOK devices will continue to be backed by world-class pre- and post-sales support in Barnes & Noble stores, as well as ongoing software upgrades and improvements to the digital bookstore service.”
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