Borders Holiday Sales Rise, But Earnings Disappoint
by Jim Milliot -- Publishers Weekly, 1/10/2008 11:01:00 AM
Borders Group reported that total sales for the nine week holiday period ended January 5 rose 3.9%, to $1.1 billion, but like Barnes & Noble, the number 2 bookstore chain said earnings will not meet expectations. In a statement, Borders CEO George Jones said that the “overall shopping environment was intensely promotional and impacted the bottom line more than we anticipated.” As a result, Borders said fourth quarter operating earnings will be flat to down slightly compared to one year ago.
On the top side, Borders had one of its strongest holiday seasons in several years. Sales at its superstores rose 6.5%, to $755.4 million with comp sales ahead 2.4%. In another similarity to B&N, music sales were very weak with sales off 12.9%. Same store sales of books were up 3.4%. In other segments, café same store sales rose 16.7% and gift and stationery sales increased 10%.
Sales at Waldenbooks fell 15.6% over the holidays, to $192.2 million, due to the closing of 136 outlets. Same store sales were up 0.2%. International sales rose a total of 36.3%, to $109.3 million, with comp sales up 10.8% led by a strong performance in Australia.
