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Borders Results: Bland and Good |
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| May 29, 2008 04:26 PM UTC |
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Tracked Blogger
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5/28 - "Borders posted a loss of 53 cents per share vs a 63 cent loss last year. Same-store sales at Borders U.S. superstores, or sales at stores open at least a year, fell 4.1 percent. Total consolidated sales, at $784.7 million, were down 1.0% over a year ago...The really encouraging news was that debt was reduced to $591.9 million at the end of the first quarter from $722.8 million at the end of the year-earlier quarter and cash flow improved by $133 million." "Why not be discouraged? The new website just went up a started yesterday. It will be a profit center this year and if you have not been there, it has been done very well...Also, the new store concept has only begun to roll out. Initial reports are very encouraging and given the rate at which they are opening new ones, one can only assume that what management is seeing it likes, a lot." "All in all, modest results and pretty much what one should have expected given the retail environment out there. That being said, one must look 2 quarters out for any real confirmation that the plan is working." 
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3 Related Views
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 N/A risk: moderate |
Borders' New Website an Act of Desperation
5/27 - "Borders hopes that taking its site in house will compensate for its sputtering bricks-and-mortar store business. Unfortunately, and more likely, Borders will now be able to fail at two businesses instead of one."
"Will Borders.com succeed? Almost certainly not. To succeed in a commodity ecommerce business like books, you need scale, and as the chart below shows, Borders has none.
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N/A risk: moderate |
Recent Borders Moves Show Little Traction, But Strategy is Sound
5/29 - "BGP’s 1Q2008 results and call suggest strategic moves in the right direction, including a broad focus on profitability over revenue growth, a substantial cost-cutting effort, and impressive inventory reductions. We see little evidence of these efforts in recent financial results, and are cutting our estimates, 2008 to a loss of ($0.14) from EPS of ($0.10), 2009 to $0.30 from $0.45, and ...
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N/A risk: moderate |
Borders Shows Good Progress...But Industry Challenges Might be Too Much
5/28 - "This quarter, while the bottom line may be not there yet, we saw evidence of the change delivered by Mr. Jones. He has un-tethered himself from Amazon's grasp in the online arena at surprisingly little costs, he is focused on reducing working capital and expenses, and developing a new concept to compete with Barnes & Noble and online entities.
Unfortunately for Mr. Jones, whether the...
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