Revenue for the fiscal year ended March 30 fell 4.4% at Indigo Books & Music, to C$893 million, with the Canadian chain attributing the decline primarily to lower physical book and e-reader sales. In addition, the company operated nine fewer small format stores in the year. Operating earnings in the year were C$1.7 million compared to a loss of C$29.6 million in fiscal 2012 when the company took a large write off.
On a comparable store basis, Indigo and Chapters superstore revenue decreased 4.6%, while Coles and IndigoSpirit small format store revenue decreased 2.4%. Online sales grew 1%. The decline in print book and e-reader sales was partially offset by double-digit growth in lifestyle, paper and toy sales and an increase in revenue from the Kobo revenue-sharing agreement due to the growth in digital reading. During the year, Indigo continued to introduce more non-book items into its inventory mix.