Indigo First Quarter: Sales Rise 18.9%; Net Loss Increases

In the first quarter ended July 2, revenue at Indigo Books & Music rose 18.9%, to C$204.6 million (about US$160.3 million, and the net loss increased 16%, to C$25.4 million (US$19.9 million).

Indigo attributed the gain in sales to "the success of Indigo's omnichannel business; a strong recovery in the retail channel where traffic levels continued to normalize, and an ecommerce business that sustained incremental growth of 80% of fiscal 2020 levels. Double-digit growth was generated in both the print and general merchandise businesses. The print business continued to benefit from a resurgence of reading, which the Company has leveraged through the launch of a partnership with TikTok Canada, to further capitalize on the popularity of reading on the platform (#BookTok)." Indigo added that its main proprietary brands--OUI, NÓTA and LOVE & LORE--continued "to gain prominence in the general merchandise assortment" and accounted for more than 30% of the quarter's general merchandise revenue growth.

As for the net loss, Indigo said "current macro-economic conditions had a negative impact on margins and costs given supply chain disruptions, higher freight costs and inflationary pressures. The company also incurred additional costs with investment in technology aimed at driving productivity and growth."

CEO Heather Reisman commented: "We are pleased to see the positive sales growth, fueled by a steady improvement to store traffic and the continued success of our online business. Our strong customer commitment reinforces the decisions we are making to invest in talent and technology for future profitability."

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