Barnes & Noble pins its hopes on Nook e-reader
Stephen Foley is a former Associate Business Editor of The Independent, based in New York. He left in August 2012. In a decade at the paper, he covered personal finance, the UK stock market and the pharmaceuticals industry, and had also been the Business section's share tipster. Between arriving with three suitcases in Manhattan in January 2006 and his departure, he witnessed and reported on a great economic boom turning spectacularly to bust. In March 2009, he was named Business and Finance Journalist of the Year at the British Press Awards.
Wednesday 31 August 2011
Barnes & Noble, the largest chain of bookshops in the US, said sales of physical books are sliding sharply at its stores and it no longer expects any of the company's growth to come from that traditional business.
The company is pinning its hopes instead on the Nook e-reader, a rival to Amazon's Kindle, and on sales of e-books for the device, which it promised to double to $1.8bn (£1.1bn) this year.
B&N's latest quarterly results, out yesterday, showed the accelerating changes in the way books are read and sold, and underscored the difficulties facing traditional bookstores. The company posted a loss of $56.6m for the period, slightly narrower than the $62.5m it lost in the same quarter last year, and said it would remain in the red for the financial year as a whole.
Same-store sales were down 1.6 per cent, as surging sales of toys and games and Nook readers failed to make up for the decline in books.
But investors were cheered that Nook sales – including the device, accessories and downloads of e-books and magazines – rose 140 per cent to $227m. B&N shares jumped more than 10 per cent in early trading.
The company this month secured a $204m investment from John Malone's Liberty Media, while rival chain Borders is being liquidated after going bankrupt.
B&N said it expected sales to jump significantly when Borders' closing down sales are finally over.
- 1 Video of Irish 'professional boxer' fighting Istanbul neighbourhood goes viral in Turkey
- 2 Novel Scarlett Johansson tried to ban, Grégoire Delacourt’s The First Thing You See, to be published in UK
- 3 A pint of water every day is the key to losing weight, scientists say
- 4 Russia 'accidentally reveals' number of its soldiers killed in eastern Ukraine
- 5 Carol Vorderman reveals she is 'covered in burns' after she fell off her treadmill while running naked
Dresden riots: Protesters in Germany attack refugee buses shouting 'foreigners out'
France train shooting: US soldiers speak of the moment they stopped gunman and 'beat him until he was unconscious'
Labour leadership: Jeremy Corbyn accused of 'deluding' young supporters with 'claptrap'
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Black holes are a passage to another universe, says Stephen Hawking
Iain Duncan Smith calls for urgent ESA overhaul as part of drive to cut down welfare costs
iJobs Money & Business
£13000 - £25000 per annum: Recruitment Genius: Would you like to be part of a ...
£20000 - £25000 per annum + competitive: SThree: Are you passionate about sale...
£25000 per annum + benefits: Ashdown Group: A large financial services company...
£20400 per annum: Ashdown Group: An established and highly reputable organisat...