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Bookseller

Barnes & Noble

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(BKS) - Get Free Report

dropped 7% after warning that it won't meet first-quarter estimates.

The New York-based company said it expects to make 11 to 13 cents a share for the first quarter, below the 14-cent Wall Street analyst consensus estimate. Barnes & Noble expects to earn $1.96 a share for the year, below the $2.08-a-share consensus estimate.

The company cited slow same-store sales growth expectations at its regular and online stores. Barnes & Noble sees sales in stores open at least a year rising in the low single digits for the first quarter and around 3% for the year.

The company said the full-year forecast includes 8 cents a share worth of costs related to the conversion to a new distribution center.

Barnes & Noble also posted fourth-quarter numbers, saying earnings from continuing operations for the fourth quarter ended in January rose 7% from a year ago to $112 million, or $1.52 a share. Sales rose 5% from a year earlier to $1.5 billion, though same-store sales rose just 1.7%.

The company's Barnes & Noble.com unit made a penny a share in the fourth quarter on sales of $151.5 million.

Barnes & Noble dropped $2.51 Thursday to $32.03.