Barnes & Noble, Borders Bleed Red

(Updated with stock prices.)

NEW YORK(TheStreet) -- It's a bad day to be a book retailers, as both Barnes & Noble(BKS Quote) and Borders(BGP Quote) are reporting a loss in their most recent quarter.

Barnes & Noble widened its loss in its second-quarter, weighed down by costs related to an acquisition.

As a result, the company also lowered its outlook, saying it expects holiday sales to be weak and results to be weighed down by costs from speeding up the production of its electronic book reader.

During the quarter, Barnes & Noble recorded a loss of $24 million, or 43 cents a share, compared with a loss of $16 million, or 34 cents, in the year-ago period.

Excluding charges related to the purchase of its college bookstore, Barnes & Noble actually lost 30 cents a share. Revenue, however, did manage to grow 4% to $1.16 billion.

The company now expects full-year earnings in the range of 33 cents to 63 cents a share, down from a prior outlook of 59 cents to 89 cents a share.

Last week Barnes & Noble said as a result of higher-than-expected demand for its new Nook e-reader, shipments will be delayed.