Barnes & Noble says it had record sales on its Nook device but that the Nook Simple Touch sales numbers were less than projected.
“We see substantial value in what we’ve built with our Nook business in only two years, and we believe it’s the right time to investigate our options to unlock that value,” William Lynch, chief executive officer of Barnes & Noble, said in a press release.
Shares in the company went down more than 20 percent after the announcement. Some investors seem to fear that without the Nook device, which has sold well so far, Barnes & Noble would be less financially successful.
The press release from the company said that sales for its Nook Tablet device exceeded estimates. However, according to the press release, the Nook Simple Touch device did not sell as well as hoped.
It was because of the lower-than-expected Nook Simple Touch sales and the cost of promoting the Nook devices, said the press release, that Barnes & Noble would be decreasing the Nook sales forecast for the year from $1.8 billion to $1.5 billion.
“They're going to have to raise capital for Nook if they want to stay viable," he said.
According to the press release, Barnes & Noble does not have a timeline for the review of the possible decision to separate the Nook business from the company.
Molly Driscoll is a Monitor contributor.