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UPDATE 1-Barnes & Noble cuts 3rd-qtr view, cites weak sales
January 7, 2010 / 2:37 PM / 8 years ago

UPDATE 1-Barnes & Noble cuts 3rd-qtr view, cites weak sales

* Sees Q3 shr $1.20-$1.40 vs previous view $1.30-$1.50

* Says holiday sales were lower than expected

* Sees stores fully stocked with Nook in next few months

* Shares down 1.4 percent in early trading

SAN FRANCISCO, Jan 7 (Reuters) - Barnes & Noble Inc (BKS.N) cut its third-quarter earnings forecast on Thursday, citing lower-than-expected holiday sales, but the U.S. bookseller said it expected its stores to be fully stocked with its Nook electronic reader in the coming months.

“Orders for Nook remained strong throughout the holiday season, and, in fact, accelerated after we announced that we had sold out our initial supply,” CEO Steve Riggio said in a statement.

“Demand remains strong in the new year and greater than our supply, however, we expect production to catch up with demand and be fully stocked in our stores in the next few months.”

Barnes & Noble said for the nine-week holiday period that ended Jan. 2, sales at its namesake stores fell 5 percent to $1.1 billion, while same-store sales were down 5.4 percent.

Sales at rose 17 percent to $134 million. The online sales include Nook revenue recognized since the product began shipping after the U.S. Thanksgiving holiday, it said.

The retailer now expects third-quarter earnings of $1.20 to $1.40 per share, compared with a previous forecast for $1.30 to $1.50 per share. Analysts, on average, were expecting earnings of $1.40 per share, according to Thomson Reuters I/B/E/S.

Barnes & Noble’s shares fell 1.4 percent, or 28 cents, to $18.92 in early trading. (Reporting by Nicole Maestri, editing by Maureen Bavdek)

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