Borders Reports Results, Announces Plans

First, Borders reported its 4th Quarter and 2006 final results, and the news isn’t so hot. On a GAAP basis, the company recorded a consolidated loss in the fourth quarter of $1.25 per share, which compares to consolidated earnings per share of $1.78 for the same period in 2005. For the full year, on a GAAP basis, Borders Group posted a consolidated loss of $2.44 per share compared to consolidated diluted earnings per share of $1.42 for the prior year. “Clearly, our 2006 results were disappointing, as our company and the industry as a whole continued to face a challenging environment,” said Borders Group Chief Executive Officer George Jones. “This performance is not indicative of this company’s many strengths, and it’s not where Borders Group is headed in the long run.”

So where isBorders headed in the long run? The Wall Street Journal‘s Jeff Trachtenberg has more on that, reporting on the company’s business plan, concentrating on revamping its website (and ending its alliance with Amazon), striking deals with Hollywood properties, shutting down Waldenbooks stores and giving up most of its stores abroad – including all 41 shops in the United Kingdom, which is quite the about-face from recent plans to expand further into commonwealth countries. “It’s a question of where we put our capital, of where we can get the highest return on investment,” Jones said to Trachtenberg. “Right now we’d rather put our money in the U.S. superstores.”

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