Indigo Books & Music, coming off of its most successful year to date, reported that sales for the first period, ended June 30, slipped by less than 1%. Sales, compared to the first quarter of fiscal 2017, dropped to C$205.4 million. The net loss rose in the quarter to C$15.4 million, from C$5.3 million in fiscal 2017.
Indigo CEO Heather Reisman attributed the decline to the closure of some underperforming stores, and the renovation of some other outlets. The higher loss was due to “the most aggressive investment period in our history,” Reisman said. She pointed to the money spent on not only renovating stores, but opening a new distribution center in Calgary and upgrading the company's digital platform. The company also remains on track to open its first U.S. store this fall.
While overall revenue declined, same store sales at the chain rose 2.4% in the quarter over fiscal 2018, with books and general merchandise sales doing especially well online.
Reisman was optimistic that the investment Indigo is making now will position the company for future growth. “Based on the tremendous response to our new concept stores and the growth we are seeing online, we are confident the period of investment will solidify our position as a valued retailer.”