Nook sales plummeted by over 60 per cent during the festive period as the company blamed a lack of new products and lower selling prices for the disappointing numbers.
Barnes & Noble, creators of the eReader, reported that its Nook brand, which includes digital content as well as devices and accessories, had revenues of $125 million [£75 million] over the nine-week period including Christmas, a drop of 60.5 per cent compared to last year. A large chunk of this was due to poor sales of Nook devices and accessories that dropped by 66.7 per cent to $88.7 million [£53.8 million].
“Sales in the NOOK segment declined year-over-year largely because during the previous holiday season the company introduced two new tablet products, while no new tablets were introduced this year. Instead, we executed our plan to sell through our existing high-quality devices,” said Michael P. Huseby, CEO of Barnes & Noble.
Sales of digital content were worth $36.5 million [£22.1 million] over the holiday period, a decline of 27.3 per cent, and an indicator that it is continuing to lose ground to competitors. The firm’s retail arm fared slightly better but revenues of $1.1 billion [£670 million] still meant a decline of 6.6 per cent compare to the year before.
The company’s Nook business has been suffering for some time and this quarter’s decrease comes after the last two periods saw double digit decreases in the revenue from device sales and the distribution of digital content.
Nook’s failings led to the departure of former CEO and director William Lynch back in July and the firm has been looking to offload the Nook part of the business to a third party due to the way it has struggled since launching in late 2009.