Barnes & Noble: Hiding Behind a Short Press Release

Barnes and Noble (BKS) issued an obtuse guidance adjustment indicating that as a result of disappointing Christmas sales and January sales trends they are reducing Q4 guidance, and with that they are reducing full year guidance. January results were available till Jan 5 and the guidance adjustment was issued before market open on Jan 10.

Management is spooked quite badly by the miscue. The change in guidance offered precious little explanation other than that "sales were disappointing, sorry it did not work out". Management did comment that with this latest downward revised guidance they are still better off than the initial guidance they provided at the start of the year.

It's very hard to pick up this book and read it. When things do not work out to this extent, you need to issue a more comprehensive explanation rather than hide behind an exceptionally short press release.