Unsurprisingly, sales at Barnes & Noble retail locations continued to decline (by 0.9%), while online sales jumped 42% to $145 million year-over-year, exceeding the company's own expectations.
The company cited sales of its e-reading device, the Nook, as the driving force behind the increase in online revenue. Sales of the device itself accelerated even further after the company reduced its price from $259 to $199 and added a $149 Wi-Fi-only version to its shelves in June. The bookseller also released apps for Android and iPhone devices this summer.
Barnes & Noble claims that e-book sales continue to accelerate week-over-week, and that owners of the company's e-reader, which was launched nine months ago, have increased their spending with the bookseller by approximately 20% (Barnes & Noble Chairman Leonard Riggio fixed that number at 17% during a conference call with investors in June). Roughly a quarter of these device owners had never before purchased anything from the company's website.
"The company made significant strides executing its digital strategy during the first quarter, and all our key metrics on the digital business are well ahead of plan," CEO William Lynch observed.
Barnes & Noble also reaffirmed that its share of the digital market -- which the company claims is 20% -- now exceeds its share of the retail book market, although new players like Borders and the forthcoming Copia platform will heighten competition in the space.