As announced in January 2006, I will retire from my position as President, Chairman, and CEO of Borders Group within the next two years. I will remain in my current role until the Board of Directors names a successor, and after that, will serve the company as the Board deems appropriate until the end of 2007. This process is highly disciplined and follows our established succession planning path for an orderly transition. During this time, I will remain focused and completely committed to executing our business plan. I appreciate the continued support of the Borders Group management team, employees, and vendors as we move forward together.
To sum up our plans, fiscal 2006 will be another year of investment, and much like 2005, we expect to see all of our EPS growth in the fourth quarter. The difference is that we are making investments in 2006 with clearer visibility as to where capital is best deployed to drive the greatest return, and we have new programs in place, such as Borders Rewards, which we anticipate will drive increased traffic and higher transaction values in 2006.
Looking further ahead to 2007, as the benefits of our investments are more fully realized, we expect consolidated earnings per share growth to be more in line with our long-term goal for annual EPS growth in the mid teens. I remain confident that we have the right strategy, people, and opportunities in place to meet this goal and achieve long-term growth for our shareholders.
Sincerely,
Gregory P. Josefowicz
Chairman, President and Chief Executive Officer
On January 23, 2006, the company announced that Greg Josefowicz will retire from his position as Chairman, President, and CEO of Borders Group within two years. To ensure a smooth and orderly transition, we have formed a committee of independent directors to select Greg's successor, and we are currently conducting an extensive internal and external search. The Board and I would like to thank Greg for his extraordinary contributions to our company over the past six years. We remain committed to the current business strategy and goals, and we are confident that Greg and his team will continue to manage the company well during this period of transition.
Amy B. Lane
Presiding Director