Canada’s biggest book retailer, Indigo Books and Music, managed to increase revenue in its second quarter by 1% despite a $1 million drop in net earnings from the same quarter last year. According to the company, revenue for the quarter ending Sept. 26 was C$207 million, up C$1.7 million from the second quarter in 2008. Indigo attributed the increase to revenue derived from the opening of four new superstores in Alberta and Ontario. Net earnings for the quarter were down from C$3.2 million last year to C$2.2 million this year. Same store sales at Indigo and Chapters superstores were down 0.9%., while comps at small format stores were down 2.1%. Sales from Indigo's online channel, chapters.indigo.ca, decreased 5.2% to C$20 million. The drops were qualified by a reminder that last year’s figures were bumped up by the “phenomenally successful” Stephenie Myer’s Twilight series.
CEO Heather Reisman also mentioned the effects of the economic crisis. "We are satisfied with our results through what has proven to be a very turbulent time for most retailers.” Reisman also noted that “the drop in bottom line results reflects our increased operating investment in Shortcovers, our digital initiative.” Launched in February, Shortcovers sells digital copies of books that can be downloaded on to various mobile devices.
