Borders Group Anticipates Lower Q1 EPS.Business Editors ANN ARBOR Ann Arbor, city (1990 pop. 109,592), seat of Washtenaw co., S Mich., on the Huron River; inc. 1851. It is a research and educational center, with a large number of government and industrial research and development firms, many in high-technology fields such as , Mich.--(BUSINESS WIRE)--April 3, 2003 Borders Group Inc. (NYSE NYSE See: New York Stock Exchange :BGP (Border Gateway Protocol) The routing protocol that is used to span autonomous systems on the Internet. It is a robust, sophisticated and scalable protocol that was developed by the Internet Engineering Task Force (IETF). ) advised today that based on sales that are trending below plan in all business segments, the company's first quarter consolidated earnings per share will fall short of the breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations guidance issued last month. Quarter-to-date comparable store sales at Borders have declined in the mid single digits while Waldenbooks comparable store sales have declined in the low double digits Double Digits was a pricing game on the American television game show, The Price Is Right. Played from April 20, 1973 through May 18, 1973's show, it was played for a car and used small prizes. . "Traffic and sales have slowed as the nation focuses on the ongoing Iraq conflict," said Borders Group Chief Executive Officer Greg Josefowicz. "With the current unpredictable sales environment, we cannot provide specific guidance for the first quarter. Borders Group has solid fundamentals and will continue to manage the business prudently during these challenging times." Management further advised that the first quarter shortfall will likely affect previously issued full-year sales and earnings guidance. The company had estimated full-year consolidated earnings per share of $1.50 to $1.60. Borders Group will provide an update when it releases first quarter 2003 results May 20 with a conference call to follow May 21 at 8 a.m. Eastern. Borders Group is a leading global retailer of books, music and movies with more than 1,200 Borders Books and Music, Waldenbooks and Books etc. stores worldwide. Headquartered in Ann Arbor, Mich., Borders Group employs more than 32,000, and teamed with Amazon.com, offers online shopping through Borders.com (www.borders.com) and Waldenbooks.com (www.waldenbooks.com). Information on Borders stores is available through www.bordersstores.com. More detailed information on the company is available at www.bordersgroupinc.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. One can identify these forward-looking statements by the use of words such as "projects," "expects," "planning," "guidance," "will," "may," "potential," "likely," "intends," "anticipates," "estimates" and other words of similar meaning. One can also identify them by the fact that they do not relate strictly to historical or current facts. These statements are likely to address matters such as the company's future financial performance (including sales and earnings guidance). These statements are subject to risks and uncertainties that could cause actual results and plans to differ materially from those included in the company's forward-looking statements. These risks and uncertainties include, but are not limited to, consumer demand for the company's products, particularly during the holiday season, which is believed to be related to general economic and geopolitical ge·o·pol·i·tics n. (used with a sing. verb) 1. The study of the relationship among politics and geography, demography, and economics, especially with respect to the foreign policy of a nation. 2. a. conditions, weather, and other factors; changes in accounting rules; asset impairments relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc under-performing stores or other unusual items; an unexpected increase in competition; the timing and amount of insurance recoveries relating to the former Borders store at the World Trade Center; uninsured losses from risks such as terrorism, earthquakes, or floods for which no, or limited, insurance coverage is maintained; higher than anticipated interest costs; energy shortages or higher than anticipated energy costs; adverse litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. expenses or results; unanticipated work stoppages or increased labor costs; higher than anticipated merchandise or occupancy costs; the performance of the company's strategic initiatives, including international expansion; the stability and capacity of the company's information systems; and changes in foreign currency exchange rates. Exhibit 99.1 to the company's Form 10-Q Form 10-Q See 10-Q. Report for the quarter ended Oct. 27, 2002 filed with the Securities and Exchange Commission sets forth a more detailed discussion of these and other risk factors that could cause actual results and plans to differ materially from those included in the forward-looking statements, and that discussion is incorporated herein by reference. The company does not undertake any obligation to update forward-looking statements. |
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