Barnes & Noble Announces $1.2 Billion In Revenues During Holiday Period
Barnes & Noble has announced the numbers for their holiday sales during the nine-week period ended December 29, 2012. These numbers are based on the company’s brick-and-mortar retail stores and the BN.com online transactions. The revenues does not include the sales of the NOOK device or e-books purchased through the Nook Book Store. The company hit $1.2 billion in revenues during that period. This is a 10.9% decline on the same period in the previous year. The reason for the drop is due to an 8.2% a decline in “comparable store sales, store closures and lower online sales.”
Unfortunately the sales of NOOK products in the Retail segment declined during the holiday period as well. The NOOK division of the company hit revenues of $311 million during the 9-week holiday period. This is a fall of 12.6% compared to the same period in 2011. However the company said that the bookstore sales of the company’s core products exceeded their expectations. They are expecting Retail comparable bookstore sales to fall in a low- to mid-single digit in 2013.
“We entered the holiday with two great new products, NOOK HD and NOOK HD+, both highly rated media tablets of phenomenal quality,” stated Barnes & Noble CEO William Lynch. “NOOK device sales got off to a good start over the Black Friday period, but then fell short of expectations for the balance of holiday. We are examining the root cause of the December shortfall in sales, and will adjust our strategies accordingly going forward.”
Despite a drops in sales, Microsoft and Pearson appear to be bullish on the future of Barnes & Noble. Pearson invested $89.5 million into Barnes & Nobles’ NOOK division for a 5% stake. Microsoft also invested $300 million into the division as part of a strategic partnership known as Nook Media LLC. After Pearson’s investment, the valuation of the NOOK division became $1.8 billion.