Borders disappoints in Q3
Ann Arbor, Mich. -- Borders Group posted sales of $470.9 million for its third quarter ended Oct. 30, a decrease of 17.6% from the same period a year ago. Same-store sales declined by 12.6%.
The company posted a loss from continuing operations in the third quarter of $74.4 million, versus a loss $37.7 million a year ago.
“Our third quarter results reflect the business challenges facing Borders and the industry at large,” said Mike Edwards, CEO, Borders. “While we are disappointed with third quarter results, my management team and I continue to vigorously address these challenges and our commitment to winning at retail is stronger than ever.”
Edwards noted that the Borders Rewards Plus program has generated more than $11 million in membership revenue since launching just 100 days ago. He added that members shop more frequently and have a higher-than-average ticket driven by significantly higher units per transaction.
“In terms of other successes, we’ve also made substantial improvements to our stores, expanding the Kids section in 51 locations to drive further sales increases in our Kids Toys and Games category, which is outpacing most other areas of the business,” Edwards said. “We recently completed the addition of Area-e digital shops to stores to position Borders as a destination for all things eReading.”