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Barnes and Noble loses cash on Nook

by on14 February 2013

Amazon rules supreme

Barnes & Noble has warned that its Nook business will post an increased full-year loss in fiscal 2013, indicating that the bookstore chain can’t really do e-books.

Barnes & Noble said it expects an earnings loss at the Nook business to exceed the $262 million loss recorded in fiscal 2012. Nook revenue this year is expected to be less than $3 billion, the company said in a statement. Barnes & Noble shares fell four percent on the back of the news, which seems to indicate that Amazon will be a winner of any publishing wars.

Until now Nook has been a revenue-driver since its launch in 2009, but product development and marketing costs have spiked and it has been more costly to chase Amazon. The company also reported weak holiday sales for the Nook in January as it sold fewer e-readers and tablets at its own stores.

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