Indigo Books & Music earns $10 million in third quarter, revenues dip

TORONTO – Indigo Books & Music Inc. says it earned $10 million in the latest quarter, down from $34.3 million a year earlier.

The retailer says revenues for its third quarter ended Dec. 30 were $370.6 million, down from $422.7 million during the same quarter in 2022. Earnings per diluted share were 35 cents, down from $1.22.

Indigo says disruptions throughout 2023, including a ransomware attack, negatively affected its results, particularly in e-commerce, which underperformed compared to retail.

The company says it also saw consumers show increasing price sensitivity amid economic headwinds, with increased penetration of promotions and discounts.

CEO Heather Reisman said in a press release that the results were “disappointing” and said the retailer is “deeply and effectively engaged in a turnaround.”

The company recently received a proposal to take the retailer private from a pair of companies owned by controlling shareholder Gerald Schwartz.

This report by The Canadian Press was first published Feb. 8, 2024.

Companies in this story: (TSX:IDG)