New products and a strong lineup of print books lifted revenue at Indigo Books & Music 3.0% in the third quarter ended December 28, 2013 compared to the same period in 2012. Revenue rose to C$332.4 million, although earnings fell to C$8.5 million from C$22.0 million.
Indigo attributed the earnings decline to higher taxes plus investments made to diversify its inventory mix and to expand its online operations. Those investments helped to drive the top line, Indigo said, as its lifestyle, paper, and toy businesses combined to post double digit growth and the newly launched Indigotech departments also contributed to the increase. By the end of the third quarter, Indigo had opened its 37 !ndigotech shops, which feature “design-inspired “ lifestyle electronics and accessories. “Clearly the investments we are making to transform Indigo are resonating with our customers," said CEO Heather Reisman.
On a comparable store basis, Indigo and Chapters superstores posted a 2.6% increase in revenue, while Coles and Indigospirit small format store revenues were up 0.5%. Online sales in the quarter increased 19.3% to a record C$41.5 million.
For the first nine months of the year, total sales fell 1.6%, to C$683.3 million, and the chain had a net loss of C$16.6 million compared to earnings of C$12.5 million in the same period last year