Borders 2nd-quarter loss narrows, stock rises
LOS ANGELES (Reuters) - Borders Group Inc (BGP.N), the second-largest U.S. bookseller, posted a narrower-than-expected quarterly loss on Tuesday, helped by tighter inventory and lower costs, sending shares up more than 7 percent.
The company, which put itself up for sale in March, said its second-quarter loss from continuing operations slimmed to $11.3 million, or 19 cents per share, from $18.1 million, or 31 cents per share.
Excluding adjustments, the company had a loss of 18 cents per share, handily topping analyst expectations for a loss of 29 cents per share, according to Reuters Estimates.
Total sales from continuing operations fell 7 percent to $749.2 million.
Sales at established Borders domestic super stores dropped nearly 9 percent from a year ago, when the final book in the Harry Potter series was released.
Excluding the impact of Harry Potter, Borders said domestic superstore same-store sales were down about 5 percent.
In the Waldenbooks Specialty Retail segment, comparable-store sales fell 7 percent. Excluding Harry Potter, same-store sales were down 1.4 percent.
Inventory from continuing operations decreased at cost by $181.7 million in the quarter.
Debt, including prior-year debt from discontinued operations, was down about 37 percent, or $272.7 million, at the end of the second quarter to $465.7 million.
After suffering from liquidity problems earlier this year, Borders has been controlling costs, including cutting jobs and inventory at its stores.
Shares in Ann Arbor, Michigan-based Borders rose to $5.75 in late electronic trading from their New York Stock Exchange close of $5.36.
(Reporting by Lisa Baertlein; editing by Jeffrey Benkoe)
