The company's year-over-year same-store sales decreased 0.7% at Borders superstores, while they were down 3.1% at its mall-based Waldenbooks units. Total consolidated sales were up 2%, to $847.2 million, while the retailer lost $5.3 million during the quarter, compared to a $2.3 million increase over the same year-ago period.

Best-seller book sales dropped 30% from last year's Q1, and music sales were down 13%. International sales in the United Kingdom also slowed down.

For Borders' Q2, executives predicted a low, single-digit increase in same-store sales as a result of the new Harry Potter release. If the book is not released, sales would be flat, they said. At Walden, the popular book could also lead to a low, single-digit increase and without it, a low single-digit decrease.