MUSIC NEWS - Related stories ? Retailers Barnes & Noble and Borders along with record company, WMG reported declines. B&N store sales decreased 2% to $950 million for the recent quarter, with comp store sales decreasing 3.2%. The largest USA bookstore chain which also sells cds, dvds and blu ray discs reduced its full-year financial forecast due to continued consumer uncertainty. Borders Group Inc, the Ann Arbor, MI based book and music retailer announced a net loss for their 3rd quarter due to declining sales as customers moved to online retailers.
Borders reported a net loss of $37.7 million, for the quarter ended Oct. 31, narrowing its loss of $175.4 million, for the previous year period. The loss was larger than financial analysts expected. Total revenues for the third quarter were $602.5 million, down 13.1 percent from $693.4 million a year earlier. Comp store-sales for the quarter decreased 12.1 percent for its Borders Superstores division, and 7.2 % for its Waldenbooks Specialty Retail chain. At the end of the third quarter, Borders had a total of 513 stores for its Borders Superstores and 361 Walden Specialty Retail stores.
Warner Music Group, the world’s third-largest record company reported a 4th quarter loss related to declining CD sales. It was a unexpected 4th quarter loss, hurt by severance charges as well as lower operating margins, despite a marginal 0.5% quarterly revenue growth.
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