Barnes & Noble, Inc. (NYSE:BKS) posted their fourth quarter earnings reflecting the company is not able to sketch out its way to becoming a dominant player in the digital reading ecosystem. The net loss for Barnes & Noble came in at $118.6 million, compared to $56.9 million in the corresponding quarter of the previous year. The earnings per share came in at $-2.11 per share on $1.3 billion in revenue.
Analysts Not Expecting Much
Analysts were expecting that the company will perform grimly this quarter after the bleak guidance from Barnes & Noble, Inc. (NYSE:BKS) itself for the fourth quarter. According to Bloomberg, the analysts were expecting the company to post a loss of $0.96 per share on $1.3 billion revenue. Additionally, analysts also predicted that there will be a decline of 4 percent in the annual revenue for the company. For fiscal 2013, Barnes and Nobles posted revenue of $6.8 billion.
Nook Media, Also Unimpressive
The retail business of the company was also unimpressive with a decline in quarterly revenue by 10 percent year over year at $948 million. Company founder Leonard Riggio expressed his view on the news of buying back the company’s 689 brick and mortar stores in February and said that if the transaction really gets completed then Barnes & Noble, Inc. (NYSE:BKS) will be left with its Nook media business.
Nook Media business has been a failure for the fourth quarter. The segment posted comparatively less quarterly revenue of $108 million, which is a decline of 34 percent from the corresponding quarter of the previous year.
The decline in the Nook business has come as a surprise, but some analysts estimated that there will be a decline in the sales of Nook tablets due to reasons like lack of productive features and app access to mark their presence in the low-cost devices.
Barnes & Noble Making Efforts
Barnes & Noble, Inc. (NYSE:BKS), however, made an effort to improve its tablets by entering into a deal with Google Inc (NASDAQ:GOOG) to access the Google Play store and some android applications like Gmail and Chrome in the tablets. The company has also lowered the price during Father’s Day to boost sales.
Barnes & Noble, Inc. (NYSE:BKS) is trying to offer a deal to those OEMs who are desperate to come up with their own tablets. The company will resume offering their own first party e-readers like the simple Touch series. Barnes and Nobles has, however, selected third party manufacturers to bring down the risk in producing the tablets.