Barnes & Noble shares falll after loss more than expected
CHICAGO (Reuters) - Barnes & Noble Inc (BKS.N) on Thursday posted a bigger-than-expected quarterly loss as the weak U.S. economy hurt demand for books and music at the largest U.S. specialty bookseller.
The company also cut its full-year earnings forecast and its shares fell more than 15 percent.
Comparable-store sales, a key measure of a retailers business, fell 7.4 percent in the quarter, Barnes & Noble said,
"A significant drop-off in customer traffic and consumer spending impacted our business in the third quarter," CEO Steve Riggio said. He added that the company is taking steps reduce expenses for the rest of the year and next year.
The company posted a net loss of $18.4 million, or 34 cents per share, in the third quarter ended November 1. That compared with a year-earlier profit of $4.4 million, or 7 cents per share.
Excluding a charge to reduce the value of some store locations, the loss was 21 cents a share. Analysts on average forecast a loss of 16 cents a share, according to Reuters Estimates.
Sales fell 4.4 percent to $1.12 billion. Analysts forecast $1.16 billion, on average, according to Reuters Estimates.
In August, Barnes & Noble said its third-quarter loss would range between 10 cents and 15 cents.
U.S. booksellers have seen low demand for books in the economic downturn, as consumers turn to essentials like food and gasoline and cut out spending on nonessential items.
In addition to its smaller rival Borders Group Inc (BGP.N), Barnes & Noble competes with mom-and-pop book stores as well as online competitors like Amazon.com Inc (AMZN.O) and others.
Barnes & Noble also said it now expects full-year earnings of $1.30 to $1.60 a share, down from its previous forecast of $1.70 to $1.90. Analysts on average forecast $1.65 a share, according to Reuters Estimates.
Barnes and Noble shares fell $2.00, or 15.3 percent, to $11.10 on Thursday on the New York stock Exchange.
(Reporting by Brad Dorfman and Alexandria Sage, editing by Dave Zimmerman)
