China's Dangdang expects 3rd-quarter revenue to miss its forecast

Reuters

Oct 21 (Reuters) - Online retailer E-Commerce China DangdangInc said it would report third-quarter revenue belowits forecast after cutting back on sales of lower-marginproducts to improve earnings.

Dangdang's American Depository Receipts fell 7 percent inextended trading after closing at $11.61.

The company, a seller of software and audio products, saidit expects net revenue to be between 1.52 billion and 1.53billion yuan ($249-$251 million), below its forecast of 1.58billion yuan for the third quarter ended Sept. 30.

The Beijing-based company, which competes with Amazon.cn and360buy.com, said it expects its net loss to narrow to 27-29million yuan in the quarter from 100.1 million yuan in the sameperiod last year.

Dangdang, founded in 1999, said it expects margins toimprove to 17.5-17.7 percent from 15.2 percent.

The online bookstore, which intends to become an onlineshopping mall targeting mid- to high-end customers through itsdangdang.com website, is expected to report quarterly results inNovember.

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