Indigo Books & Music reports $20.5M second-quarter loss and revenue drop

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TORONTO - Indigo Books & Music Inc. reported a net loss of $20.5 million for its most recent quarter as revenue declined from the comparable period last year.

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Hey there, time traveller!
This article was published 06/11/2019 (2194 days ago), so information in it may no longer be current.

TORONTO – Indigo Books & Music Inc. reported a net loss of $20.5 million for its most recent quarter as revenue declined from the comparable period last year.

The book retailer says its loss of 74 cents per common share compared to a net loss of $19.1 million or 70 cents per share in the same period the previous year.

Its revenue for the quarter ended Sept. 28 totalled $203.4 million — down from $216.3 million in the second quarter of the previous year.

A sign showing where Indigo plans to open a new store this fall is seen at the Mall at Short Hills in Short Hills, N.J., on July 22, 2018. Indigo Books & Music Inc. reported a net loss of $20.5 million for its most recent quarter. THE CANADIAN PRESS/Craig Wong
A sign showing where Indigo plans to open a new store this fall is seen at the Mall at Short Hills in Short Hills, N.J., on July 22, 2018. Indigo Books & Music Inc. reported a net loss of $20.5 million for its most recent quarter. THE CANADIAN PRESS/Craig Wong

Indigo says its revenue fell amid strong competitive pressures and its decision to reduce promotions to boost profits.

Comparable same-store sales, a key retail metric, fell eight per cent for the second quarter.

Indigo, which launched an initiative to cut $20 million to $25 million in costs at the start of this year, says it reduced expenses by $9 million in the first half of its 2020 financial year.

It says that has been partially offset by other costs, including opening new stores and one-time expenses with moving its New York office to Toronto.

This report by The Canadian Press was first published Nov. 6, 2019.

Companies in this story: (TSX:IDG)

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