Ann Arbor, Mich. Borders Group said Tuesday it posted a wider-than-expected second-quarter loss as sales slumped.
The bookseller recorded a net loss of $45.6 million in the second quarter ended Aug. 1, compared with a loss of $9.2 million a year earlier.
Quarterly results included non-operating charges of $32.9 million, related to such items as a warrant liability fair value adjustment, store closings and consulting, professional and other fees.
"The second quarter was a transitional one as we made significant space and inventory reductions to strategically position declining categories for profitability while further developing businesses that have potential," CEO Ron Marshall said in a statement.
Marshall added that the actions hurt its sales in the near term, but added the chain is now in position for better sales during the second half of the year.
Sales fell 17.7% to $616.8 million mostly on declines at its namesake bookstores and Waldenbooks specialty retail stores. International sales fell 5.6% to $28.7 million, pulled down by the stronger dollar.
Same-store sales for its Borders superstores dropped 17.9%, while Waldenbooks specialty retail stores reported a 10.8% same-store sales decline.