Nook Tablet sales have exceeded expectations

Barnes & Noble is pondering a move to split off its Nook e-reader business in the wake of a shortfall in the expected sale of its basic e-reader Nook Touch.

The New York-based book store said it is cutting its forecast for earnings for 2012 to $150 million to $180 million. That is down from a previous forecast of between $210 million to $250 million. Shares of Barnes & Noble stock were down 24 percent Thursday morning, selling at $10.36.

The fate of Barnes & Noble’s Nook business comes at a time when Amazon.com has seen the sale of Kindle Fire and other tablets sizzle.

Barnes & Noble did say that sales of Nook Simple Touch, Nook Color and the new Nook Tablet increased 70 percent during the holiday season over the same period last year. Sales of Nook Tablet exceeded expectations, while sales of Nook Simple Touch lagged expectations, as customers favored color devices.

Barnes & Noble lowered the cost of its Nook Simple Touch from $139 to $99.

Barnes & Noble said it is considering separating the Nook business.

“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 statement.

Barnes & Noble said it is talking with publishers, retailers and tech companies in international markets that may lead to expansion of the Nook business abroad. Barnes & Noble said there was no time frame on when the company might make a decision about Nook.