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Borders loss widens dramatically, but beats Street


Ann Arbor, Mich. Borders Group reported Tuesday that its loss widened significantly in its fiscal first quarter due to continued weak sales and more than $70 million in after-tax charges. But results still beat Wall Street expectations.

The company reported a loss of $86 million for the quarter, which ended May 2, compared with a loss of $31.7 million in the same period a year earlier. The results included $70.1 million in charges primarily due to a previously announced finance arrangement with Pershing Square Capital Management.

Borders' first-quarter revenue fell to $650.2 million from $735.8 million a year earlier. Same-store sales fell 13.5% at Borders superstores and 5.5% at Waldenbooks for the quarter.

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