Reuters Says Apple Retail Won't Break Even This Year

According to Reuters, Apple expects its retail operations, including the 27 Apple Stores it opened this year, to post a small loss. From the Reuters article:

Apple originally forecast the retail operation would break even in the current quarter and make a small profit this fiscal year, but scaled back its goals for the business when reporting fourth-quarter results in October.

"Given the continued deterioration of the U.S. economy and the after-effects of the events of Sept. 11 ... the company now expects its retail segment to suffer a small loss for the first quarter of 2002 and all of fiscal 2002," Apple said in its filing with the Securities and Exchange Commission.

Apple opened its latest store in Cambridge Mass. on Dec. 15.