Borders says it’s trying to boost its sales
Borders Group Inc. reported an 11.6% decline in revenue for the first quarter, but its chief executive told analysts on a call Wednesday that it is taking action to reverse the slide.
Ron Marshall said that the differences would be evident in stores soon with better book inventory and more urgency in generating sales. Borders also plans more creative promotions.”We employ people who are absolutely passionate about books,” he said. “It is about making that personal connection with the customer and then making that connection for the customer.”The Ann Arbor-based bookseller reported a net loss of $86 million, or a loss of $1.44 a share, for the three months ended May 2 after the market closed Tuesday. That compares with a net loss of $31.7 million, or a loss of 50 cents a share, for the same period a year ago.Revenues registered at $650.2 million for the quarter, compared with $735.8 million in the same period of 2008.Excluding onetime charges of $70.1 million, Borders had a loss of 27 cents a share, beating analyst expectations of a 50-cent-a-share loss. The analysts polled by Thomson Reuters had expected revenue of $637.3 million.Marshall said that by the end of June, Borders stores should be stocked with more titles that customers want. Last year, the bookseller, faced with liquidity issues, dramatically reduced inventory, he said.”It has taken a long time to recover, but we hope to see top-line improvement as we fill these gaps,” he said.As Borders reduces its inventory of CDs and DVDs, it will boost space for children’s books, health and wellness, cooking and other items.Borders reduced its debt at the end of the first quarter by $266 million to $325.9 million, or 45% less than a year ago.Sales at Borders superstores open at least a year fell by 13.5% and by 5.5% at Waldenbooks. Borders had 376 Waldenbooks locations at the end of the quarter compared with 476 a year ago. It operates 515 Borders stores.BY GRETA GUEST
Ron Marshall said that the differences would be evident in stores soon with better book inventory and more urgency in generating sales. Borders also plans more creative promotions.”We employ people who are absolutely passionate about books,” he said. “It is about making that personal connection with the customer and then making that connection for the customer.”The Ann Arbor-based bookseller reported a net loss of $86 million, or a loss of $1.44 a share, for the three months ended May 2 after the market closed Tuesday. That compares with a net loss of $31.7 million, or a loss of 50 cents a share, for the same period a year ago.Revenues registered at $650.2 million for the quarter, compared with $735.8 million in the same period of 2008.Excluding onetime charges of $70.1 million, Borders had a loss of 27 cents a share, beating analyst expectations of a 50-cent-a-share loss. The analysts polled by Thomson Reuters had expected revenue of $637.3 million.Marshall said that by the end of June, Borders stores should be stocked with more titles that customers want. Last year, the bookseller, faced with liquidity issues, dramatically reduced inventory, he said.”It has taken a long time to recover, but we hope to see top-line improvement as we fill these gaps,” he said.As Borders reduces its inventory of CDs and DVDs, it will boost space for children’s books, health and wellness, cooking and other items.Borders reduced its debt at the end of the first quarter by $266 million to $325.9 million, or 45% less than a year ago.Sales at Borders superstores open at least a year fell by 13.5% and by 5.5% at Waldenbooks. Borders had 376 Waldenbooks locations at the end of the quarter compared with 476 a year ago. It operates 515 Borders stores.BY GRETA GUEST
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