TORONTO – Indigo Books & Music Inc. reported improved earnings after three consecutive quarterly losses as it works to regain “true” profitability.

The bookseller reported net earnings of $25.8 million or 94 cents per basic common share for the 13-week period ended Dec. 28.

That’s up from $21.5 million or 80 cents per share for the same period the previous year.

Revenue for the third quarter fell to $383.7 million from $426 million due to a deliberate strategy to pull back on promotional activities that don’t boost the company’s margin.

Comparable sales, a key retail metric, fell 10.5 per cent.

Indigo launched an initiative to cut $20 million to $25 million in costs at the start of the fiscal year, and says it has met the target of $20 million.

CEO Heather Reisman says the company is “in the early stages of a fundamental repositioning” that will allow it to thrive in the current environment.

“We are pleased to see some early positive financial impact, but we are fully committed to returning to growth and true profitability, and we feel confident about the actions we are and will be taking.”

This report by The Canadian Press was first published Feb. 6, 2020.

Companies in this story: (TSX:IDG)