Lower Prices Limit Indigo Growth
by Joshua Kerbel -- Publishers Weekly, 1/30/2008 3:25:00 PM
On the heels of a Christmas season marked by a soaring Canadian dollar, significant retail price discounting and a lack of blockbuster mega hits, Indigo Books & Music reported small gains in revenue and earnings for the third quarter, ending December 29, 2007.
Across the board, total revenue for the quarter increased by 0.7% compared to last year, reaching C$322.6 million, with Indigo and Chapters superstores posting 0.6% growth. Sales at Coles small format sales were down 1.7%, and online sales grew 8.0% to C$30.9 million. Overall, the company's pre-tax quarterly earnings rose C$0.6 million to C$41.6 million for the same period last year. For the first nine months of the year, total revenue has increased 6.5% to C$716.6 million with net income of C$49.7 million.
