Barnes & Noble Inc. reached a deal to sell color tablets made by Samsung Electronics Co. co-branded with the book chain's Nook label, the companies said Thursday.
The deal fulfills Barnes & Noble's previously stated plan to reduce its heavy investment in the Nook, which has been a financial drain in recent years, allowing the retailer to focus more on its stores and college business.
Under the deal, Barnes & Noble has committed to buying one million Samsung co-branded color tablets over the next 15 months, which the retailer will sell in its stores and on its website starting in August. The tablet will be a version of Samsung's Galaxy Tab 4 released in the U.S. on May 1, featuring Nook reading and shopping software.
Barnes & Noble said it would disclose the price of the new tablet when it is launched. On Amazon.com Wednesday, a 7-inch Galaxy Tab 4 was priced at $199.99.
Barnes & Noble shares rose 66 cents to $19.56 in early afternoon trading on the New York Stock Exchange.
The two cost-cutting moves come only a few weeks before Barnes & Noble will report its full-year results. The retailer has forecast a decline of comparable-store sales in the high single digits at its 663 consumer bookstores, with core retail comparable bookstore sales—which exclude the sale of Nook devices and related products—falling in the low-to-mid single digits.
Barnes & Noble also said it has leased new space in Santa Clara, Calif., for its Nook staffers and is exiting its campus in Palo Alto. The bookseller's digital education staffers will relocate to offices in Mountain View, Calif. Barnes & Noble estimated the relocations will lead to a reduction of its future lease commitments of about $102 million. Barnes & Noble will take a related fourth quarter charge of about $30 million.