Some information from the just-released Borders (BGP) 10-K.
* Achieved average sales per square foot of $228 and average sales per superstore of $5.6 million.
* International superstores, which operate under the Borders name, achieved average sales per square foot of $381 and average sales per superstore of $8.3 million in 2007.
* Waldenbooks Specialty Retail operates stores under the Waldenbooks, Borders Express and Borders Outlet names, as well as Borders-branded airport stores. Average sales per square foot were $277 and average sales per store were $1.1 million for 2007
* Borders leases all of its stores. Borders store leases generally have an average initial term of 15 to 20 years with multiple three- to five-year renewal options. At February 2, 2008, the average unexpired term under Borders existing store leases in the United States was 9.8 years prior to the exercise of any options. The expiration of Borders leases for stores open at February 2, 2008 are as follows:
* Waldenbooks Specialty Retail store leases generally have an initial term of five to 10 years, and in certain cases posses renewal terms of one to three years. At present, the average unexpired term under Waldenbooks Specialty Retail existing store leases is approximately 1.7 years.
* Borders has $92.2 million remaining on a share repurchase authorization but cannot repurchase them if borrowings under credit agreement exceed 90%.
* Borders Rewards has grown to over 25 million members.
Again, nothing earth shattering which is a nice disclosure sign.
Disclosure (“none” means no position):Long BGP
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2 replies on “Borders 10-K notes”
Boarders is still hemorrhaging 1/3 its market cap a year($157.4M). It comes from essentially 2 categories… “Loss from disposal of discontinued operations” and “Income (loss) from discontinued operations.”
Does this mean they are taking huge losses from shutting down non performing parts of the business.
Dont get me wrong Sales are up. They have continued to be. I just dont get what the initial problem is. I haven’t look over the 10k too hard today but will later tonight. Any Ideas?
ryan,
margins have shrunk mainly due to cd sales, sg&a expenses have risen due to store closures, harry potter promotions were at a loss throughout the industry