News
Borders to Reveal New Strategy, Hastings & Books-A-Million Report Lower Profits
posted on by Egan Loo
The Detroit Free Press newspaper reported on Wednesday that the American book retailer Borders Group will reveal its revamped turnaround strategy next Wednesday during an investors' conference call. The company faces delisting from the New York Stock Exchange as its stocks closed at 70 cents on the New York Stock Exchange on Thursday. It already laid off 679 employees in Borders Superstores and 63 employees at its Waldenbooks Specialty Retail segment earlier this month. Ron Marshall replaced George Jones as CEO just this past January.
Two of Borders' competitors, Hastings Entertainment and Books-A-Million, reported lowered sales in the fourth quarter, although both still posted profits during a period that hit the retail sector hard. Hastings reported almost 30% lower earnings at US$4.1 million, compared to the same period last year. CD and DVD sales were down, but sales of books, electronics, consumables, and "trends" items such as licensed merchandise were up. Books-A-Millon's earnings dropped 3.6% year-to-year to US$11.4 million.
Source: The Consumerist via Publishers Weekly's The Beat, ICv2
