82.1 F
San Fernando
Thursday, May 30, 2024

Guitar Center Earnings Below Expectations

Guitar Center reported a 23.6 percent increase in its fourth quarter 2005 earnings, the Westlake Village guitar retail chain reported income of $33.5 million, or $1.14 per share on consolidated net sales of $562.8 million compared to earnings of $28.3 million, or $0.99 per share on consolidated net sales of $468.9 million in the same period last year. Marty Albertson, chairman and CEO, said the sales increase, while below expectations, was due to their product and efficiency, as well as store expansion. The 2005 earnings increase in the fourth quarter was affected by the after-tax charge of $1.7 million as a result of two class action lawsuits and an after tax gain of $883,000 due to stock-based compensation. For the full year of, Guitar Center’s earnings jumped 20.9 percent to $76.7 million or $2.67 per share on consolidated net sales of $1.8 billion versus $63.4 million, or $2.29 per share on sales of $1.5 billion in 2004. Full year sales increased 17.8% and included a $2.1 million after-tax charge after the acquisition of Music & Arts Center Inc.

Featured Articles

Related Articles