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Borders US trims loss, but sales decline

27.08.08

Borders Group in the US has decreased its loss in the second quarter to 2nd August compared to the same period last year, but posted a decline in revenue in the period.

The retailer reported a loss from continuing operations of $11.3m (£6.1m) for the quarter ended 2nd August, an improvement on the same period last year, when the retailer posted a $18.1m (£9.8m) loss. Its operating loss rose slightly from $21m (£11.4m) to $23.1m (£12.5m).

During the quarter, the company reduced its debt to $465.7m (£252.4m) compared to $738.4m (£400.2m) a year ago, helped in part by the sale of its Australia/New Zealand/Singapore business, but total sales fell 6.9% to $749.2m (£406m).

"We have not only improved profitability, but also substantially reduced debt, improved cash flow and significantly strengthened our balance sheet," said Borders Group c.e.o. George Jones. "Our focus on expense reduction, inventory management and improved gross margin is clearly working, and we have managed to show substantial improvement in a very difficult retail environment. We will maintain this discipline and continue to manage the company prudently while also addressing the need to improve the top line."

Retail Financial US Borders Global

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