Borders Group Inc

Borders Group Inc., the second-largest U.S. bookstore chain, posted a fiscal first-quarter net loss of $5.3 million on lower sales of bestsellers and music. The company cut its full-year earnings forecast.

The net loss of 7 cents a share contrasted with restated net income of $2.3 million, or 3 cents a share, a year earlier, the Ann Arbor, Mich.-based company said. Sales in the three months ended April 23 rose 1.8% to $853 million.

Second-quarter profit will be lower than analysts’ estimates, the company said. It also lowered its full-year profit forecast to as much as $1.84 a share from the $1.92 projection it gave in March.

Sales at stores open at least a year fell 0.7% compared with a year earlier. However, Borders said second-quarter same-store sales would rise by a low-single-digit percentage, helped by the release of the latest “Harry Potter” book.