Borders’ 2Q Sales Drop

Borders Group Inc. (Ann Arbor, Mich.) reported its sales for the fiscal second quarter of 2009, ended Aug. 1, dropped 17.7 percent to $616.8 million. Same-store sales declined 13.0 percent across the company, while among its divisions, same-store tallies decreased 17.9 percent at Borders superstores and 10.8 percent at Waldenbooks Specialty Retail stores.

“The second quarter was a transitional one as we made significant space and inventory reductions to strategically position declining categories for profitability while further developing businesses that have potential,” says Borders Group ceo Ron Marshall. “While this transition impacted sales in the short run, our stores are now better positioned to drive improved sales in the back half of the year.”

The company closed two Borders superstores during the second quarter, ending with 513 locations. Six Waldenbooks’ locations were also shuttered.

On an international level, the company’s sales, which consists primarily of Paperchase, totaled $28.7 million, a decrease of 5.6 percent compared to a year ago. Excluding the impact of foreign currency translation, segment sales increased by 10.4 percent.