Bookstore chain, Barnes & Noble, Inc.(NYSE:BKS) on
Monday said that it had received record pre-orders for its Nook tablets.
Chief Executive William Lynch told CNBC in an
interview that data showed that though the company had lost some share in the
tablet segment, recent figures for its devices showed that the company had the
ability to grow in a highly competitive market.
He said preorders for the Nook HD and HD+, which are
expected to begin shipping in late October, are at "the highest levels
we've ever seen for the Nook."
Barnes & Nobles is seen as a brick and mortar
company with its chain of bookstores still being the bread and butter for the
company. It is perceived as being less agile compared to rivals such as Amazon.com,
Inc.(NASDAQ:AMZN), which has been quicker off the mark in terms of adapting its
business to an increasingly mobile environment.
Lynch however maintained his view that the market is
large enough for more than one player and said his company was specifically
targeting readers and families.
The company has expanded distribution for Nook's
products at Wal-Mart Stores, Inc.(NYSE:WMT) and Target Corporation(NYSE:TGT).
Wal-Mart and Target earlier this year decided to stop selling Amazon's Kindle
in their stores.
Barnes & Noble earlier this month received an
investment of $300 million from Microsoft Corp.'s newly created subsidiary
called Nook Media LLC.
That investment gave Barnes & Noble's shares a
jolt when the deal was first announced in April, but the stock has since
faltered as high investment costs in the Nook and concerns about the health of
the physical book market in an increasingly digital world has vexed investors.
Shares of BKS soared 6% to $14.13 in Monday’s session.
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