Sales, Earnings Rise at Indigo
by Staff -- Publishers Weekly, 7/5/2004
An improved fourth quarter, growing online sales and better comp-store sales all contributed to gains in sales and earnings at Indigo Books & Music for the fiscal year ended April 3, 2004. For the full year, revenue rose 3.4%, to C$805.8 million ($597.5 million), while net income increased to C$4.3 million ($3.2 million) from C$1.4 million ($1 million).
The revenue increase was led by a 33% increase in online sales, a figure that includes sales from Indigo's in-store computer kiosk program. Comparable-store sales at superstores rose 2.7% in the year, while same-store sales at mall outlets slipped 0.1%. Both channels performed better in the fourth quarter, with same-store sales up 5% at superstores and up 2.5% at mall stores.
Citing SARS, mad cow disease and blackouts, Indigo CEO Heather Reisman called fiscal 2004 "a demanding year for all retailers." Indigo was also faced with the additional task of completing "post-merger work" following Indigo's purchase of Chapters. Reisman said that with many of the "deep technological challenges"—including the implementation of the SAP operating system—behind it, Indigo "is in a position to focus on some key opportunities that will drive both growth and profitability." In early June, Reisman said she planned to add more nonbook items to Indigo's product mix, with the aim to make the chain's outlets "cultural department stores."
