Barnes & Noble has predicted that its Nook tablet line will see further decline in 2013, according to a report, Digital Spy said.
Reuters claims that the American bookseller believes the hardware range's losses will top the $262 million (£170 million) it haemorrhaged in 2012.
Nook e-readers first entered the market in 2009, bringing competition to Amazon's Kindle line, but the devices have struggled to compete with the influx of mid-range tablets such as the Google Nexus 7 and the iPad mini.
Barnes & Noble's most recent hardware, the 7-inch Nook HD and 9-inch Nook HD+, have failed to claw significant market share away from the market leaders.
With new mid-range tablets rumoured to be in the works at Samsung and Microsoft as well as second-generation models of the Nexus 7 and iPad mini, the retailer faces an uphill struggle to reverse its fortunes.
Barnes & Noble will reveal its third-quarter financial results on February 28.