CNET también está disponible en español.

Ir a español

Don't show this again

2021 Ford Bronco leak iOS 14 public beta The Batman HBO Max spinoff Skype vs. Zoom Ready Player One sequel Meet the new Batwoman

As sink Nook sales, so slumps B&N's fiscal health

Revenue in Barnes & Noble's Nook division hit $316 million, down 26 percent compared to the prior year, as the unit's losses balloon to $190.4 million.

The Nook is having some trouble.
The Nook is having some trouble. James Martin/CNET

Barnes & Noble had a rough fiscal third quarter -- the three-month period ended January 26 -- due mainly to its ailing Nook operation.

During the period, Barnes & Noble snagged $2.2 billion in revenue, down 8.8 percent compared to the same period last year. The company's earnings before interest, taxes, depreciation, and amortization slumped 63 percent from $150 million last year to $55.5 million this year.

The big decline in its operation during the period was its Nook business. Revenue in its Nook division, which includes its e-reader and related services, hit $316 million, down 26 percent compared to the prior year. That division's losses widened by 130 percent from $82.8 million to $190.4 million.

Barnes & Noble has been indicating that its Nook business is in trouble for months. The company in January reported that its Nook operation "fell short of expectations" after a relatively strong Black Friday weekend.

In an attempt to improve its Nook business, Barnes & Noble and Microsoft signed a deal that made them joint owners of the Nook operation. Pearson earlier this year signed up for the joint venture with 5 percent ownership. Still, the division is in a state of flux.

Another part of Barnes & Noble that's in a state of flux is its retail business. Just yesterday, the company announced that its founder Leonard Riggio, offered up a plan to purchase all of the assets in its retail operation. In a statement today on the matter, Barnes & Noble said that it's planning to evaluate the proposal, but cautioned that there "can be no assurance" that a deal might happen.

Barnes & Noble's retail operation was another troublesome operation in the third quarter. Revenues were down 10.3 percent year-over-year to $1.5 billion. Earnings, however, jumped 7.3 percent to $212 million.

Barnes & Noble's shares are down 2.2 percent in pre-market trading following today's earnings announcement.