Barnes & Noble reported today that its Nook business earned revenues of $316 million for its fiscal third quarter (which ended January 26, 2013), a 26 percent decrease from the same time period last year.

The company attributed the loss to a decrease in device sales, inventory charges and promotional allowances. While the Nook business includes both device sales and digital content sales, the company did report that digital content sales were up 6.8 percent over the prior year.

Here is more from the press release: “In response to the device sales shortfall over the holiday season, NOOK is calibrating its business model and has implemented a cost reduction program that the company projects will significantly reduce NOOK’s expenses.”