Borders sees 4Q, FY earnings growth

ANN ARBOR, Mich. Borders Group reported that earnings per share from continuing operations in the fourth quarter improved to 91 cents from 48 cents in the same period one year ago. For the full year, the loss from continuing operations improved to $1.83 per share compared with a loss from continuing operations of $3.07 per share in 2008.

Comparable-store sales in the fourth quarter declined 14% and 8.5% in the Borders and Waldenbooks segments, respectively.  For the full year, comparable-store sales declined 14.4% and 8.1% in the Borders and Waldenbooks segments, respectively.

"Restoring the financial health and profitability of the company remains our top priority," said Borders Group interim president and CEO Mike Edwards. "We took important steps toward this goal with the long-term extension of our existing credit facility and the additional capital provided by the new term loan. We have made significant operational and financial improvements and will maintain those disciplines as we shift our focus now to growing market share by acquiring, engaging and retaining customers through a transformation of the Borders brand. I'm pleased with the cooperation we have received from our bank group, lenders, vendors, partners and associates who share our vision for a successful Borders."

Total sales at Borders superstores in the fourth quarter were $723.1 million, down 14.2% from a year ago. For the full year, total segment sales were $2.3 billion, down 13.7% from 2008. Total fourth quarter sales at stores within the Waldenbooks Specialty Retail segment were $163 million, a 16.7% decline from same period last year. For the full year, total segment sales were $387.3 million, down 19.3% from 2008 due to store closures.