Guitar Center Revises Forecast; Stock Jumps
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Shares of Guitar Center Inc. jumped 12.5% in after-hours trading after the retailer raised its fourth-quarter earnings guidance because of sharply higher sales during the holiday shopping season.
The Westlake Village-based company said after the market closed that net sales in the fourth quarter rose 18% to $396 million, while same-store sales, a key retail performance gauge, increased 10%.
As a result, Guitar Center said it increased its quarterly earnings forecast to 74 cents to 75 cents, up from its previous target of 69 cents to 73 cents.
Shares of Guitar Center, which bills itself as the leading U.S. retailer of guitars, other instruments and recording equipment, rose to $34.30 in after-hours trading, up from their close of $30.49 on Nasdaq.
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