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Borders, Barnes & Noble Report 3rd Quarter Sales
posted on by Crystalyn Hodgkins
The American booksellers Borders and Barnes & Noble both revealed their sales results for the third quarter on Tuesday. Borders Group sales decreased 12.7 percent as compared to the same time last year. Same-store sales were down nearly 25 percent compared to two years ago. The company lost US$38.5 million in the quarter as compared to a loss of US$172.2 million in the same quarter last year. The losses were less than anticipated, but Chief Executive Officer Ron Marshall said the results were "difficult and disappointing."
Despite the results, the Borders Group has been increasing its inventory in preparation for the holiday season, with total increases of 4 percent to 7 percent, according to Chief Financial Officer Mark Bierley.
Barnes and Noble reported much smaller sales declines in the third quarter. The company logged a 4 percent overall increase in sales this quarter, although this is attributed to the acquisition of its college stores subsidiary. Its same-store sales decreased 3.2 percent in the quarter. Overall, same-store sales are down 10 percent from the same time two years ago. The company lost US$24 million for the quarter as compared to a loss of US$18 million for the same quarter last year.
The company also lowered its earnings forecast for the year by 30 percent, saying it expects that "general retail traffic will remain challenged during the holiday selling season.” Same-store sales are expected to decline 1 percent to 3 percent for the quarter, forecasting total declines for the year at 2 percent to 4 percent.
