The world’s largest bookstore chain has just released a new quarterly report. Sales are up, but B&N is still losing money – around $57 million last quarter.

All in all, Barnes & Noble is doing fairly well (aside from losing money). Sales were generally up  by 2% over last year, with online and eBook sales increasing by 37% to $198 million. This is largely attributed to  high demand for the Nook Touch, NookColor, and B&N’s other gadgets and eBooks.

But it’s not all good news; in-store sales are down to around $1 billion, a drop of about 3%. The drop would actually have been even higher if not for increased sales of non-book items like the Nook, toys, and games.

But the great news hereis the Nook. Barnes & Noble saw a significant increase in the sales of digital content, hardware, and accessories. Sales were up 140% in the first quarter to $277 million, compared to last year.