Flat DVD Sales Can't Halt Borders Slide29 May, 2007 By: Erik Gruenwedel
Citing flat DVD sales and negative music CD revenue, Borders Group Inc. posted first quarter (ended May 5) consolidated losses of nearly $35.9 million.
The Ann Arbor, Mich.-based retailer, which operates Waldenbooks, posted a loss of $20.2 million during the same period last year.
Total consolidated sales for the company increased nearly 2% to $876.8 million, compared to $860 million last year.
Comparable store sales (open at least 12 months) declined 1.9% among more than 1,200 stores worldwide.
Total sales for the Waldenbooks segment declined 15% to $108.1 million. Comparable store sales decreased 1%.
CEO George Jones said fiscal 2007 would be a transition year made more challenging by the current sales environment.
“We are focused on improving results, including returning the company to earnings per share growth beginning in 2008,” Jones said.