Borders book chain said late Tuesday its same-store sales fell and its losses persisted in the first quarter.

Borders Group Inc. said its first-quarter net loss from continuing operations narrowed to $31.7 million, or 53 cents per basic share, from $35.9 million, or 61 cents per basic share, a year earlier.

Thomson Financial said analysts had expected a loss of 47 cents per share.

The Ann Arbor, Mich.-based retail book and media chain said its revenue fell 1 percent to $784.7 million.

As was the case with nearly every other retailer, the challenging overall consumer environment hampered sales performance in the first quarter, Borders chief executive officer George Jones said in a statement accompanying the financial results released after the stock market closed Tuesday.

Borders stock closed down 47 cents to $6.25 a share Tuesday on the New York Stock Exchange.

Borders also announced the launch of its own e-commerce site after seven years of partnership with The company expects the site to break even this year and add to earnings in 2009.

Same-store sales at domestic superstores fell 4.1 percent.

Borders is the nation's No. 2 retail bookseller behind Barnes and Noble, who earlier this month confirmed it has assembled a team to keep a closer watch on its rival.

Borders released its earnings after the close of trading, which had seen the share price fall 7 percent.