Blockbuster Warns on 2Q Earnings

Dallas, Blockbuster Inc. CEO John. F. Antioco warned shareholders that the retailer’s second-quarter performance was hurt by weak rentals of new DVD releases.

“Overall industry decline and continued poor theatrical performance had a negative impact on the second quarter and has created uncertainty about the balance of the year,” Antioco said in a presentation to shareholders today.

The news, which comes a week before the retailer is set to release its second-quarter earnings, scared investors into selling their stock. The company’s shares fell 42 cents to $8.20 on Tuesday afternoon trading on the New York Stock Exchange.

Antioco added the company is “taking aggressive actions” to revive its performance in the second half of the year.