Total revenues at Borders Group rose 17.5% to $656.3 million for the third quarter ended October 24. The sales gain includes a 24.5% jump in superstore sales to $434.9 million, a 5.2% increase in sales at Walden to $197 million and a 193% sales gain at borders.com to $4.1 million. Comparable superstore sales were up 6.6% in the quarter, while Walden stores had a 2.1% gain in same store sales.
Although the company's retail operations posted a profit of 14%, to $2.4 million, the $3.9 million loss reported by its e-retailing unit resulted in a net loss of $1.5 million in the most recent quarter, compared to a loss of $800,000 in the third period of fiscal 1999. Borders noted that despite the overall loss, retail earnings were enough to cover the costs of opening 12 domestic superstores, two international stores and eight Walden outlets.
For the nine-month period ended October 24, Borders had a net loss of $8.2 million, compared to net income of $5.4 million in the same span last year, while total revenues rose 15.1% to $1.90 billion. Retail sales were $1.89 billion in the period, with net income of $6.8 million, while borders.com had revenues of $10.6 million and a net loss of $11.6 million.
In other news from Borders, the company has followed Barnes & Noble's lead, dropping the New York Times bestsellers list for its own list as the basis for discounting hot books.
Under the new plan, Borders's "30/30 value program" will offer 30% off the top 20 hardcovers, the top 20 trade paperback titles and the top 20 mass market titles. Discounts will apply to both fiction and nonfiction books. A 30% discount will also apply to the top 10 audiobooks. Borders will no longer offer an across-the-board 10% hardcover discount.
