Borders Group Inc. (NYSE:BGP) said its fiscal third-quarter loss widened on Thursday, and the news put downward pressure on shares after the market closed.
The bookseller posted a loss of $74.4 million, or $1.03 a share, compared with last year’s loss of $37.7 million, or 63 cents a share.
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Sales fell 17.6% to $475.6 million, down from year-ago revenue of $577.8 million. Comparable-store sales slipped 12.6% from the third quarter of last year. Gross margin fell to 15.4 %, down from 18.5% last year, as a result of the “de-leveraging of fixed occupancy costs caused by negative comparative store sales,” according to the release.
The bookseller’s chief executive Mike Edwards said the results were symptomatic of the “business challenges” facing both Borders and the industry.
"While we are disappointed with third quarter results, my management team and I continue to vigorously address these challenges and our commitment to winning at retail is stronger than ever,” Edwards said in a statement. Edwards went on to cite plans for the future that would support profitability.
Shares of Borders fell a penny per share, or just beneath 1.00% in Thursday’s session, closing the day at $1.37 a share. The stock fell another 9 cents, or 6.57%, in electronic trading upon the announcement of results.