Packaged Media Contributes to Borders Q1 Loss27 May, 2010 By: Billy Gil
Borders Group reported an operating loss of $33.5 million in the first quarter of 2010, compared with a loss of $29.1 million in the same period a year ago.
Domestic comp-store sales declined by 11.4%, while core categories (excluding multimedia) were down by 6.8%. The company’s stores have been shifting from lower-margin multimedia product to higher-margin product, including books, cafes, kids products, gifts and stationery.
Borders remains focused on expanding digitally, including launching an e-book store, launching mobile apps, boosting support expanding Borders.com and introducing digital shops in store, coming in August.
“Our top line remained challenged during the first quarter, yet we were able to soften the impact on our bottom line through continued cost controls,” said Borders Group interim president and CEO Mike Edwards.