Borders’ results for the first quarter followed a familiar trend--decreasing revenue, a decline in comparable store sales and a reduction in its loss. Total revenue for the period ended May 1, fell 15.8%, to $547.2 million, and the net loss was cut to $64.1 million from $86.0 million. In a statement, interim CEO Mike Edwards acknowledged that the retailer’s top line remained “challenged” in the quarter, but said that cost controls helped to shrink the chain’s loss.
Borders did not breakout sales for its superstores and Walden Specialty group as it has in the past, choosing to report in domestic and international segments. Comp sales at the domestic stores fell 11.4% in the quarter; in last year’s first quarter comp sales were down 12.5%. Excluding multimedia results, same store sales were down 6.8%. Sales in the domestic store group fell 16.1%, to $520 million, and the division had an operating loss of $33.2 million compared to $29.3 million last year. Borders closed six stores in the quarter, finishing the period with 680 domestic stores.
Sales in the international segment, which includes Paperchase and its franchise stores, rose 3.7%, to $22.4 million with comps up 3.7%. Excluding the impact of currency, sales fell 2.5%. The group had a small operating loss.
Borders continues to invest in improving its digital capabilities, Edwards noted. Capital expenditures in the quarter rose to $5 million from $2.4 million with the majority of funds going to develop the Borders eBook store and on Borders.com as well as to the integration of the Walden group’s computer system into the superstore system.
Edwards called the new $25 million investment from Bennett LeBow and continued progress implementing its digital strategy, including the introduction of the Kobo e-reader, as highlights in the early part of 2010.
