Driven by the retailer's domestic superstore comparable storesales of 2.5% in the fourth quarter ended Jan. 28, year-over-yearearnings per share were up nearly 10% posting at $1.78. For thefull year, consolidated earnings per share were $1.42 compared to$1.69 earned in 2004.

Borders Group posted fourth-quarter consolidated sales of $1.45billion, an increase of 6.3% compared to 2004. For the full-year2005, consolidated sales were $4.03 billion, a 3.9% increase fromthe prior year.

Fourth-quarter net income was $119.1 million, down 3% from$122.8 million a year ago. During the quarter, gross margin as apercent of sales declined by 0.3% from 33.9% to 33.6%. Josefowiczattributed the loss to increased promotional discounts, as well asde-leveraging of fixed occupancy costs within the WaldenbooksSpecialty Retail segment. On a full-year basis, net incomedecreased by 23.4% from $131.9 million to $101 million.