Here’s what B&N had to say about their holiday sales:
The Company expects to announce its holiday sales results on January 3, 2013. Based on preliminary sales results to date in the holiday period and sales trends, the Company expects its holiday sales results will be below expectations and that the NOOK business will not meet the Company’s prior projection for fiscal year 2013.
For the longest time now I’ve been concerned about how well B&N is doing, and now it looks like I was right. I might not have had any good evidence to show that there was a problem, but my gut instinct told me B&N was not having much success with the Nook.
In fact, one feeling I had had for the past several weeks was that B&N was seeing poor sales this holiday season. I do so wish that I had had courage to actually express that impression.
I think we can clearly see now why B&N has been trying to foist the Nook division onto someone else. Unfortunately, B&N couldn’t find a sucker dumb enough to buy the entire Nook division, so instead they’ve been picking up piecemeal investments from Microsoft and (as of today) Pearson.
These new sales projections change the entire tone of the investment. Now it is no longer a strategic investment; instead Pearson is propping up one of Amazon’s competitors.