It seems the Nook family of devices is doing so well for Barnes & Noble that the book seller is contemplating spinning the brand off into its own company.
Barnes & Noble announced this morning that Nook sales were up 70 percent for the nine-week holiday season over the same time last year. Sales of the associated media also saw a rise of 113 percent over the same time period, leaving the company to announce a sales forecast of $450 million in Nook related sales for the 2012 fiscal year, and next year to come in around $700 to $750 million.
Building off of this growing market, Barnes & Noble added the following statement to its release:
Due to the increased significance of the NOOK business platform, the Company is evaluating its reporting segments. The evaluation is expected to be complete by the end of this fiscal year, which may result in reporting NOOK as a separate operating segment.
While this makes sense on some levels, the Nook is part of what is keeping the retailer afloat. Same store sales increased by an anemic 3.4 percent year-over-year, while online sales increased by 52 percent by the same metric. Spinning off the Nook would substantially decrease the parent company’s value. Barnes & Noble was looking for a company to buy them out through out last year, but finally settled on a strategic investment from Liberty Media to keep themselves going. Could the company be looking for a possible exit from the brick & mortar marketplace and focus solely on online and digital sales? Only time will tell.
What do you think about the idea of Barnes & Noble spinning its Nook division off into a separate company?
[via Barnes & Noble]