UK ’weakness’ hits loss-making Borders

Total sales in the international segment were $129.4m in the quarter ended 29th July, up by 6.0% compared to the same period a year ago, as the business pushed on with three new superstores. Excluding the impact of foreign currency translation, total international sales would have increased by 5.7% for the period. Net loss for the international segment in the second quarter was $14.2m compared to a loss of $5.2m a year ago.
Borders Group reported second-quarter consolidated sales of $856m, which was down 4.0% over the same period in 2005 primarily due to what the group called weakness in bestsellers and cycling against last year’s release of the sixth Harry Potter book. The consolidated net loss increased to $18.4m, compared to income of $1.3m a year ago.
"Our investments will peak in the third quarter as we continue to remodel stores, improve infrastructure and build our loyalty program, while at the same time we ramp-up inventory and make other investments to prepare for the holiday selling season,” said Borders Group chief executive officer George Jones. “Once these investments are behind us by the end of the third quarter, we expect to begin to benefit from them--as well as from improved sales trends in the fourth quarter--to end the year with positive momentum going into 2007."
Philip.Jones@Bookseller.co.uk