Barnes & Noble was hot out of the gate over the Black Friday weekend, with sales for its Nook device doubling, but from there the numbers slowly started to disintegrate. In the 9 weeks ending December 29, the Nook segment’s revenue dropped 12.6 percent year-on-year. Digital content sales grew, but at a rate less than half that of the previous quarter and almost a tenth of that in the 2011 holiday season.
Catalysts are critical to discovering winning stocks. Check out our newest CHEAT SHEET stock picks now.
Seeing numbers decline in the young market of tablets and e-readers is a bad sign, as they should rather be accelerating as more and more people switch from traditional books and magazine to the new technology. The physical Barnes & Noble book stores are also seeing fewer customers — even after the competitor Borders was liquidated — which may point to an overall reduced popularity for the company as the selection for tablet devices grows to entice consumers elsewhere.
Despite the troubling numbers, Barnes & Noble is still confident it can reach the $3 billion in sales for Nook Media that it had predicted back in October.
Don’t Miss: How Luxurious Will This Deal Be for Gap?