Shares of the book and music seller were sliding $2.71, or 7.9%, to $31.78.
For the period stretching from Nov. 4 to Jan. 5, Barnes & Noble's same-store sales dropped 0.4%. The company attributed the decline to significantly lower-than-expected sales of recorded music.
Excluding music sales, same-store sales, or sales at stores open at least a year, increased 0.8% for the nine-week holiday period.
The company now expects fourth-quarter earnings of $1.57 to $1.76 a share, below its prior guidance of $1.67 to $1.86. Analysts, on average, forecast earnings of $1.82 a share for the period.
For the full year, Barnes & Noble cut its profit projection to $1.81 to $1.99 a share from its previous forecast of $1.91 to $2.09. Wall Street sees earnings of $1.97 a share for the year ending this month.
This article was written by a staff member of TheStreet.com.