Sales and profits were both down in Borders' Q1 results, but some found reason for cheer in its improved operating results and cash flow. Over-all sales declined around 12% in the period, from $736 million in Q1 08 to $650 million in Q1 09. Same store sales were down 13.5% in Borders stores and 5.5% in Waldenbooks stores.
Profitability was heavily impacted by some non-operating charges, producing an $86 million loss for the quarter, worse than the $32 million loss in Q1 2008. But on an operating basis, performance improved from a $32 million first quarter loss last year to a $16 million loss in 2009. Most of the $70 million in charges was due to changes to the company’s financing agreement with
The company actually threw off cash in Q1, and was able to reduce its debt. Over-all, the company’s debt is down 45% from a year ago.
Inventory continued to decline; it’s now down $207 million from the year ago period. Can you say “returns?”
Eleven Waldenbooks stores were closed in Q1; no Borders stores were closed or opened.
