Skip to main content

Borders Group Loss Widens

It's developing a plan, though.

Bookstore operator

Borders Group

(BGP)

said its third-quarter loss widened as sales in established stores fell.

The Ann Arbor, Mich.-based company lost $39.1 million, or 64 cents a share, in the quarter ended Oct. 28, compared with a loss of $14.1 million, or 20 cents a share, a year ago. Analysts polled by Thomson First Call were estimating a loss of 64 cents a share.

Third-quarter revenue rose 1.7% from a year ago to $860.4 million as against analysts' expectation of $838.9 million.

Looking ahead, Borders is projecting a fourth-quarter earnings of $1.80 a share to $2.00 a share, including charges of 8 cents to 14 cents a share. Analysts are expecting the company to earn $1.94 a share in the fourth quarter.

For the full year, the company is expecting earnings of 30 cents to 65 cents a share, including a charge of 18 cents to 24 cents a share, as against analysts' estimate of 58 cents a share.

"To drive shareholder value long-term, we are developing a strategic plan that has four key goals -- differentiating Borders superstores from the competition in meaningful ways, including product merchandising and presentation; aggressively right-sizing the mall business; driving profitability in the International segment; and embracing innovation and technology," the company said.

Sales at domestic Borders superstores increased 1.8% in the third quarter to $583.2 million while the comparable store sales in the segment decreased 0.7%. Revenue from international segment was up 14.9% to $144.6 million while comparable store sales at superstores decreased 0.3% in local currency. Revenue from Waldenbooks fell 10.5% to $123.8 million and comparable store sales decreased 5% in the third quarter.

This story was created through a joint venture between TheStreet.com and IRIS.