Barnes and Noble has Lost Over 1 Billion Dollars on Nook
Feb
24

Barnes and Noble has Lost Over 1 Billion Dollars on Nook

By

barnes-and-noble-nook-and-books

Barnes and Noble is a company in transition, when it comes to their floundering Nook Media division. In the last two months they have announced the departures of Jim Hilt – Vice President of eBooks, digital products director Jamie Iannone and VP of digital products Bill Saperstein. A myriad of other people have left, including the head of accessories and most of the hardware developers. The big reason these executives have left is primarily due to the fact that Nook Media has lost over a billion dollars since 2010.

Barnes and Noble is quite transparent when it comes to their financial earnings and hold nothing back from investor calls and their reporting. Normally, their end of the year reports come out every April and there is some bleak news. In 2011 the company lost 209 million, in 2012 they lost 261 million and in 2013 they increased the losses to 475 million. If we look at the quarter ending on July 27, 2013 they reported loses of 55 million and October 26, 2013 NOOK lost 45 million. If you add all of these figures together it comes to over 1 billion dollars.

It is painfully obvious that Barnes and Noble was making too many units and not selling enough. This resulted in dramatic price drops just to move the inventory. The executives are firmly to blame with none of their e-readers sold nearly as much as the Nook Color, their first tablet and their first/second generation e-ink display with a color LCD on the bottom.

Amazon, Apple and Kobo all got involved in the e-reader and tablet space roughly around the same time Barnes and Noble first started making devices. All of these companies are extreamly profitable and rarely have a quarter in which they are in the red. Why? They poach executives away from rivals, and have great leadership. This is evident in the products they release and the marketing they put into it. Can you ever say you saw a sexy Barnes and Noble television commercial?

I have no idea how a company can lose over a billion dollars and still be in business. It makes 0 sense with the largest bookstore in the USA to serve as a retail showcase can be in this much trouble. Obviously, there are plenty of ideas on how to turn things around, instead Barnes and Noble appoints the VP of Marketing Doug Carlson to lead the eBook crew. Here is an idea, hire from the outside, to bring fresh new ideas. A herd of spitting camels, is still a herd of spitting camels, no matter who the alpha of the group is.

Michael Kozlowski (4437 Posts)

Michael Kozlowski is the Editor in Chief of Good e-Reader. He has been writing about electronic readers and technology for the last four years. His articles have been picked up by major and local news sources and websites such as the Huffington Post, CNET and more. Michael frequently travels to international events such as IFA, Computex, CES, Book Expo and a myriad of others. If you have any questions about any of his articles, please send an email to michael@goodereader.com


  • dochu

    Produce a eink reader that is pdf friendly- will regain the business like no other

  • Mary-Margaret Anthoine Ney

    Not surprised. My Nook experience has been very disappointing.

  • Jet

    More accurately, it’s:

    Year ending April 30 2010 NOOK EBITA: ?
    Year ending April 30 2011 NOOK EBITA: (209 million USD)
    Year ending April 30 2012 NOOK EBITA: (261 million USD)
    Year ending April 30 2013 NOOK EBITA: (475 million USD)

    +

    Quarter ending on July 27, 2013 NOOK EBITA: (55 million USD)
    Quarter ending on October 26, 2013 NOOK EBITA (45 million USD)

    = (1045 million USD) EBITA from May 1, 2010 to October 26, 2013

  • Ford Warrick Jr

    I guess I’ve back a losing horse. I really enjoy going to Barnes and Noble and I like their Window 8 app. They made a big mistake by not opening up to Google Play sooner.

  • Del

    Larger screen, expandable memory (even if it is not used), and for gods sake discounts for Barnes memberships on your e-book store. Why would I buy an ebook when I can get the regular one for less?

  • Nick

    Hahahaha!

    Bought one. Returned it, due to the lockdowns, the bad interface, and the cheap quality. Bought an iPad mini for the kids, and they love it.

    B&N should make deals that make electronic versions of the hard or softbound good to their customers. A lot of us want a hard copy and we want the electronic copy. Do that and I am a fan for life. Unfortunately for them, its Amazon that’s pushing that… They may have lost their window of opportunity…

    Some other good suggestions below. Why is it that CEO’s get paid so much again?

  • Nick

    I too like Barnes and Noble. Its not the horse that blows, its the Jockeys who are riding it… Of course, the more the horse owner mistreats its horse, the sicker it will get.

  • Nick

    I too like Barnes and Noble. Its not the horse that blows, its the Jockeys who are riding it… Of course, the more the horse owner mistreats its horse, the sicker it will get.

  • imno007

    This paragraph reads like you copied and pasted it from a foreign news source, might want to check the syntax/punctuation there:

    “…The executives are firmly to blame with none of
    their e-readers sold nearly as much as the Nook Color, their first
    tablet and their first/second generation e-ink display with a color LCD
    on the bottom.”

  • imno007

    Okay, I cleaned the whole thing up for you ;)
    _____________________________________________________________________________________
    Barnes and Noble is a company in transition when it comes to their
    floundering Nook Media division. In the last two months they have
    announced the departures of Jim Hilt, Vice President of eBooks; Digital
    Products Director Jamie Iannone; and VP of Digital Products, Bill
    Saperstein. A myriad of other people have left, including the head of
    accessories and most of the hardware developers. The big reason these
    executives have left is primarily due to the fact that Nook Media has
    lost over a billion dollars since 2010.

    Barnes and Noble is quite transparent when it comes to their financial
    earnings and hold nothing back from investor calls and their reporting.
    Normally, their end of the year reports come out every April and there
    is some bleak news. In 2011 the company lost 209 million dollars, in
    2012 they lost 261 million, and in 2013 they lost another 475 million.
    If we look at the quarter ending on July 27, 2013, they reported losses
    of 55 million, and on October 26, 2013 NOOK reported losses of another
    45 million. If you add all of these figures together it comes to over
    one billion dollars.

    It is painfully obvious that Barnes and Noble was making too many units
    and not selling enough. This resulted in dramatic price drops just to
    move the inventory. The executives are firmly to blame, with none of
    their e-readers selling nearly as much as the Nook Color, their first
    tablet and their first/second generation e-ink display with a color LCD
    on the bottom.

    Amazon, Apple and Kobo all got involved in the e-reader and tablet space
    roughly around the same time Barnes and Noble first started making
    devices. All of these companies are extremely profitable and rarely have
    a quarter in which they are in the red. Why? They poach executives away
    from rivals, and have great leadership. This is evident in the products
    they release and the marketing they put into it. Can you ever say you
    saw a sexy Barnes and Noble television commercial?

    I have no idea how a company can lose over a billion dollars and still
    be in business. It makes zero sense how the largest bookstore in the USA
    to serve as a retail showcase can be in this much trouble. Obviously,
    there are plenty of ideas on how to turn things around, but instead
    Barnes and Noble appoints the VP of Marketing, Doug Carlson, to lead the
    eBook crew. Here is an idea: hire from the outside, to bring in fresh new
    ideas. A herd of spitting camels is still a herd of spitting camels, no
    matter who the alpha of the group is.

  • Cristiona

    You mean like every Nook ever made? They all have .pdf support and always have.

  • Michael Kozlowski

    so you just copy/pasted what i wrote.

  • Michael Kozlowski

    I also have an iPad Mini 2 and iPad Air, tremendous build quality.

  • Michael Kozlowski

    I agree, i think Nook had hoped their own android app store would catch on. Their one downfall was the mandatory SDK all app developers had to use.

  • Michael Kozlowski

    How so?

  • Michael Kozlowski

    You are right, but seldom does six inch e-reader provide any type of good experience. You need a 9.7. or larger.

  • Nick

    Oooh. Air. Nice. But the wife won’t let me get one unless I give her Eastern European sister my iPad retina. And I don’t like her! But do I don’t like her enough???? :-)