Barnes & Noble's Nook loss gets deeper
American book retailer Barnes & Noble released figures on November 29, 2012 showing its Nook division was continuing to make a loss. This was mostly due to an increase in expenses for the division, $70.3 million in Q3 2012, as the company tried to keep up with rivals such as Apple and Amazon. News of this continued loss clearly worried share-holders, Barnes & Noble's share price on the NYSE fell by -1.78 (11.09%) at the time of writing.
In one small piece of good news, the company reported an increase of 6% revenue in the Nook segment for the 3 months up to October 27, 2012, buoyed by a 38% leap in digital media sales. However, the division losses have been further affected by the company's decision to enter the international market by selling its products in the UK and by increased development costs.
Barnes & Noble will be hoping the Nook HD and Nook HD+ will sell well despite competition from the iPad Mini and Kindle Fire. The company has managed to secure promotions with both Wal-Mart and Target in the US market to sell the Nook devices exclusively, but Morningstar analyst Peter Wahlstrom stated "the investments to keep pace with rivals will make it hard for the Nook unit to turn a profit".