The goal of our investments is to build on our proven business plan, as we seek to differentiate our stores, accelerate our growth and deliver consistent returns to our shareholders.

We maintained our strong balance sheet, and delivered direct returns to shareholders by repurchasing 7.6 million shares of common stock, totaling approximately $177 million. In December 2004, our Board of Directors voted to increase our quarterly dividend by 12.5% to $0.09 per share. In February 2005, the Board approved a new stock repurchase program, making $250 million available for future stock repurchases.

This steady performance continued to generate growing value for our shareholders during fiscal 2004, as Borders Group's common stock outperformed the S&P 500 for the same period.

Balanced Investments to Drive Future Growth

Significantly, we achieved all of these financial milestones while continuing to build for the future by making balanced investments of capital and resources in:

  • New and remodeled Borders stores — in the U.S. and overseas — to build our core business and drive international growth with an emphasis on books as the centerpiece of our retail offering.


  • The pilot conversion of selected Waldenbooks stores to Borders Express stores to maximize this segment's potential and leverage the value of the Borders brand.
  • The acquisition of Paperchase Products Limited and a new licensing agreement with Seattle's Best Coffee to increase store traffic and comparable store sales.
  • Technology and process improvements to streamline our supply chain and improve our inventory management, enabling us to identify and respond to market trends and consumer preferences with greater speed.


All earnings per share figures are on a GAAP basis and include the impact of lease-related accounting adjustments as well as non-operating adjustments. Prior-year amounts have been restated to correct lease accounting.