The Borders Group announced last week that earnings per share for the fourth quarter ended January 29 will likely be in the $1.14- $1.18 range, approximately 4%-7% below previous estimates. The company attributed the shortfall to winter storms that had a negative impact on sales in several key markets, as well as to an increase in the sale of gift certificates, which are not reported until redemption. Borders estimated that comparable store sales at its superstores will be up 2.0%-2.5%, while same store sales at Walden will be flat to down 0.5% in the quarter.
The outlook for the full year is better, with the company projecting that earnings will increase by 21%-25% over fiscal 1998. Borders said more information about results will be issued later this month, but noted that its online activities are projected to post a loss of 12 cents to 14 cents per share for the year, compared to a loss of seven cents last year. The company said it was satisfied with its international operations, noting that three of its five highest volume stores are located outside the U.S.
