It’s only been a couple of months since Barnes & Noble downgraded guidance for its Nook business. Now the company is doing so again.
In a press release sent out after the market closed Wednesday, Barnes & Noble said it “expects its fiscal year 2013 Nook segment EBITDA loss to be greater than it was in fiscal 2012 and expects fiscal year 2013 Nook Media revenues to be less than $3 billion.” Previously, B&N had expected Nook Media’s FY 2013 revenues to be $3 billion, with EBITDA losses comparable to those in FY 2012.
Barnes & Noble had also been set to announce its third-quarter earnings for fiscal year 2013 on February 22, but said Wednesday it will actually report them a week later, on February 28.
Nook Media is supposed to be the profitable part of the company. Consisting of B&N’s Nook and college businesses, Barnes & Noble spun it off in 2012 with a $300 million investment from Microsoft and, as of late December 2012, an $89.5 million investment from Pearson. (Barnes & Noble holds 78.2 percent of Nook Media.) Instead, Nook is doing worse at the same time that Barnes & Noble’s other segments — retail stores and BN.com sales — are also doing badly. Over the holidays, Nook device sales, BN.com sales and in-store sales all fell compared to the previous year. And the company plans to close up to a third of its retail stores over the next decade.