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Music Sales Rip Barnes & Noble

The retailer cuts profit targets after weak sales of CDs.
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Barnes & Noble (BKS) - Get Barnes & Noble, Inc. Report lowered its fourth-quarter profit projections as weak demand for CDs led to a decline in same-store sales for the holiday period.

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.

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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.