Frankly, that's not the kind of stuff that makes business headlines. But we've proven, in both strong and soft markets, that our disciplined business plan is precisely the right strategy for delivering consistent earnings growth and solid financial returns for our shareholders. Last year, we continued to build on that track record.

Record Sales and Double-Digit Earnings Growth

Despite flat book unit sales industrywide, Borders Group achieved double-digit earnings growth for the fourth straight year in 2004. Consolidated earnings per share increased 15.8% to $1.69 per share compared to $1.46 in 2003, in line with our long-term financial objectives.

Consolidated sales grew to $3.88 billion, a 4.9% increase compared to the previous year. Our International segment — now more than 13% of our business — continued to post noteworthy sales gains, growing 25.3% to $510.7 million. For the year, comparable store sales increased 0.6% at Borders superstores and declined 2.0% at Waldenbooks.