Barnes & Noble shares drop after company warns earnings guidance could be slashed as much as 10%
Barnes & Noble Inc. shares dropped 4.2% in Thursday premarket trading after the bookseller said earnings guidance could be slashed as much as 10% due to advertising spending and promotional activity. The FactSet guidance is for third-quarter earnings of $1.17 per share. Last year the company reported EPS of 97 cents. Barnes & Noble is scheduled to announce earnings on Feb. 28. The company reported a same-store sales increase of 4% between Black Friday and New Year's Day, and increased 1.3% for the nine-week holiday period ending Dec. 29. Barnes & Noble said this was the best same-store sales performance "in several years." Barnes & Noble shares have gained 42.5% over the last year while the S&P 500 index has slumped 6% for the period. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.