Barnes & Noble Projects Wider Annual Loss; Shares Drop Most in 5 Months

Barnes & Noble Inc., the largest U.S. bookstore chain, forecast a wider loss for the year, sending the shares down the most in five months.

The loss for the year will be as much as $1.15, the New York-based company said in a statement today. In August, the company forecast a loss of up to 65 cents. The stock fell as much as 17 percent.

The book chain, led by Chief Executive Officer William J. Lynch Jr., is investing in e-readers as more customers switch to reading on devices like Amazon.com Inc.’s Kindle. Last quarter, the retailer released a color version of its Nook e-reader.

The company also said today that it’s still completing a review of its strategic options, including a potential sale. There’s no guarantee a transaction will occur, the company said.

Barnes & Noble declined $1.43, or 9.6 percent, to $13.44 at 9:40 a.m. in New York Stock Exchange composite trading. The stock earlier sank as low as $12.27, the largest intraday decline since June 29.

The net loss narrowed to $12.6 million, or 22 cents a share in the quarter ended Oct. 30, from $24 million, or 43 cents, a year earlier, Barnes & Noble said. Earnings this quarter will be 90 cents to $1.20, the bookseller said. Analysts project $1.24 a share, the average of five estimates compiled by Bloomberg.

To contact the reporter on this story: Matt Townsend in New York at mtownsend9@bloomberg.net

To contact the editor responsible for this story: Robin Ajello at rajello@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.