Sales, Earnings Increase at Indigo
by Staff -- Publishers Weekly, 6/9/2003
Total revenue at Indigo Books & Music rose 5.9%, to C$779.2 million ($569 million), for the year ended March 31, and operating earnings increased 13.5%, to C$42 million ($31 million). Net income for the year was C$1.4 million, compared to a loss of C$47.9 million in fiscal 2002, a figure that included C$40.3 million in restructuring charges.
The revenue gain was due mainly to a 5.3% increase in comparable-store sales at the chain's superstores. The increase in same-store sales offset the effects of Indigo's store-closing program, which left the chain with 88 superstores at the end of the fiscal year, down from 90 at the end of the prior year. Same-store sales at Indigo's mall stores dipped 0.2%, which the company attributed to a decline in customer traffic. The company reduced the number of mall stores in the year from 187 to 179. Online sales were up 12.6%, an increase that was driven by improvements in selection and delivery and increased marketing.
In addition to higher sales, Indigo said its improved earnings were the result of lower warehouse and distribution costs.
