Innovation Update
Ahead Of The Bell: Borders To Report 1Q Results
The Associated Press
05/26/09 - 08:27 AM EDT
PORTLAND, Ore. (AP) Borders Group Inc. is scheduled to report its first-quarter results on Tuesday as the bookseller continues to struggle in a difficult economy.
Ann Arbor, Mich.-based Borders has seen its sales slip for some time as shoppers turned to online and discount retailers like Amazon.com. The recession compounded the problem, with shoppers cutting back on discretionary purchases like books and music.
Borders' profit for the fourth quarter, usually its strongest, dropped 54 percent because of a one-time charge and dismal sales during the holiday season.
The company has made massive changes in the past year slashing jobs, bringing in a new CEO and closing stores to keep itself afloat.
Its larger competitor Barnes & Noble is struggling as well. The company reported a first-quarter loss last week as its sales continued a multi-quarter slide. But the results beat Wall Street expectations and the bookseller raised its profit forecast for the year.