Indigo Books & Music reported a strong first quarter for fiscal 2016, with sales growth of 2.3% and a C$5 million reduction in its loss in the quarter compared to the first period of fiscal 2015. According to CEO Heather Reisman, the revenue growth “confirms our strategy is taking us in the right direction. We are excited by the initiatives we are currently working on which will continue to build our growth momentum,” she said in a statement.

Overall sales for the quarter were C$184.9 million, up by more than C$4 million from last year’s first quarter. The company attributes its success in large part to the double-digit growth of their general merchandise business, which includes everything from decorative cushions to kitchen products and Kate Spade merchandise.

Comparable sales rose 5.3% in its superstores, while comp sales at its smaller format stores, such as Coles and IndigoSpirit, decreased by 1%. Online sales jumped 18.2%. The net loss for the period ending June 27, 2015, was C$9 million, down from a loss of C$14 million the previous year.

In addition, Indigo is now up to four in-store American Girl doll boutiques across Canada. The company has plans to open two additional 1,400- to 1,800-square-foot in-store boutiques this fall, at Chapters locations in Calgary and the West Edmonton Mall, both of which will soon be rebranded as Indigo stores.