Guitar Center Earnings Drop Nearly 44% Amid Weakening Demand

Guitar Center Holdings Inc. posted a drop in third-quarter earnings amid weakened consumer demand and tighter gross margins, according to people with knowledge of the situation.

• Adjusted Ebitda fell 44% to $31.5 million from $55.9 million a year earlier, said the people, who asked not to be named because the results are private
  • Results reflect the 13 weeks ended Oct. 29
• The closely held company’s net sales for the quarter were down 8.7% to $578.7 million, compared to $634 million a year earlier
• The Guitar Center segment accounted for about $478 million of net sales in the latest quarter, compared ...