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Article: Guitar Center takes $73 mill. write-off on Music & Arts: write-down reflects ongoing losses in B&O Division. Management says it remains "committed" to Music & Arts. Slow guitar sales impact other divisions as well.(RETAILER UPDATE: NEWS FROM THE RETAIL FRONT LINES)
- Article from:
- Music Trades
- Article date:
- April 1, 2007
CopyrightCOPYRIGHT 2007 Music Trades Corp. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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GUITAR CENTER'S FOURTH quarter was marked by a $73.2 million after-tax write-down of goodwill associated with the Music & Arts division, reflecting ongoing financial challenges at the school music operation. For the quarter, the company posted an 11.7% net increase in sales to $628.5 million, compared with $562.8 million for the same period a year ago. However, the goodwill charge caused a $40.0 million loss for the quarter, versus net income of $33.5 million a year ago. Excluding the special charge, earnings were $33.2 million. For the full year, consolidated net sales increased 13.9% to $2.030 billion for the full year 2006 from $1.782 billion in 2005. Net income for the ...