Barnes & Noble lowered its sales outlook for the year but reaffirmed its profit expectations based on lower than expected first quarter sales results and the overall retail environment.
The New York-based bookseller lowered its guidance for comparable store sales from slightly positive to slightly negative as it announced a loss for its first quarter.
Barnes & Noble said it had a first quarter net loss of $2.2 million including a one time charge related to a tax dispute.
The bookseller lost 4 cents per share for the second quarter, compared with a year earlier loss of $1.7 million, or three cents per share. Net sales were up 1.1 percent to $1.16 billion.
Analysts had expected earnings of 5 cents per share, excluding special items on sales of $1.17 billion, according to a poll by Thomson Reuters.
The company said it still expects full-year earnings between $1.70 to $1.90 per share. Second quarter earnings are expected to be in the range of eight cents to 13 cents.
During the quarter the company recorded an $8.3 billion charge to settle a tax dispute with the State of California. The settlement involved the collection of sales and use of taxes on sales made by the company from 1999 to 2005.