Its international like-for-like sales also fell by 3.4 per cent. The US-based book group said its international revenues were affected by the 'continued weakness' of its UK business, which accounts for about 60 per cent of its total international superstore sales. Overall, its international sales grew by 6 per cent to $129.4 million (£68.4 million).
Borders Group reported total sales of $856 million (£452.7 million) for the quarter ending July 29, down 4 per cent on the same period in 2005. It said the decrease was primarily because of weak bestsellers during the last quarter and strong sales in the same period last year, boosted by the release of the sixth Harry Potter book. The group made a net loss of $18.4 million (£9.7 million).
Borders Group chief executive officer George Jones said it expected its investment programme, which includes remodelling stores, building its loyalty programme and enhancing inventory, would start to yield better results by the end of its financial year.
'Once these investments are behind us by the end of the third quarter, we expect to benefit from them - as well as from improved sales trends in the fourth quarter - to end the year with positive momentum going into 2007,' he added.
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