Barnes & Noble sees ‘Fifty Shades’ of green

Question of the Day

What has been the biggest debacle on Obama's watch?

View results

Revenue from devices dropped partly because of lower prices. Chief Financial Officer Michael Huseby said Nook prices were about 23 percent lower than a year ago.

Earlier this month Barnes & Noble announced that it was cutting the price for its less-expensive model Nook tablet computer by $20, undercutting Amazon’s Kindle Fire. The New York company said it was lowering the price for the 8-gigabyte model Nook tablet to $179 from the current $199. The Kindle Fire, with 6 gigabytes of memory, sells for $199. Barnes & Noble also announced a $50 reduction, to $199 from $249, for its 16-gigabyte Nook tablet.

Device sales were also hurt by Barnes & Noble’s inability to get enough of its e-readers with the Glowlight feature to market to meet demand. The Glowlight emits low-level light to help with bedtime reading.

“Device unit growth and digital content growth would have been materially higher, if not for the production shortages,” Lynch said.

Barnes & Noble also maintained its prediction for a mid-single-digit decline in fiscal 2013 revenue at bookstores open at least a year. Revenue from college bookstores open at least a year is still expected to be flat.

Shares of Barnes & Noble fell 48 cents, or 3.9 percent, to close at $11.87 Tuesday. For the year to date, the shares are off 18 percent and far below their 52-week high of $26.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Comments
blog comments powered by Disqus
TWT Video Picks