Guitar Center Revises Outlook as Same-Store Sales Rise in Quarter

Guitar Center Inc. on Wednesday increased its fourth-quarter outlook while reporting same-store sales jumped 10% during the period as holiday promotions lured customers.

The company now anticipates earnings of 89 cents to 92 cents a share when it reports fourth-quarter results Feb. 9. The outlook is higher than the company’s previous projection of 80 cents to 88 cents.

Analysts surveyed by Thomson First Call forecast earnings of 88 cents a share on $448.2 million of revenue.

Guitar Center, based in Westlake Village, said same-store sales growth was more than double the 4.8% increase expected by analysts. Net sales increased 18.5% to $468.9 million during the quarter ended Dec. 31.

Net sales from new stores contributed $25.1 million to results, and represents 44% of the total increase in the company’s net sales, Guitar Center said in a statement.

“We are surprised and delighted with the strong sales generated in the fourth quarter, which trended upward as the holiday season progressed,” said Marty Albertson, chairman and chief executive.

Guitar Center is the nation’s leading retailer of guitars, amplifiers, percussion instruments, keyboards and pro audio and recording equipment.

The company operates 136 Guitar Center stores and 19 American Music stores. Guitar Center also operates the online music store Musician’s Friend.

Shares of Guitar Center fell 88 cents to $51.50 on Nasdaq. However, they jumped $1.72 to $53.22 in after-hours trading.