Double digit growth in its general merchandise operation plus increases in its core book business led by strong sales of adult coloring books resulted in an 8.8% increase in revenue at Indigo for its second quarter ended September 26, 2015 compared to last year’s second period. Sales in the most recent period were C$205.7 million. The Canadian chain also cut its net loss to C$1.8 million from C$8.5 million.
Comparable store sales increases led the sales gain at Indigo as the retailer operated two fewer superstores in the quarter and four fewer small format stores. Comps at the superstores were up 13.6% and sales through the small format stores rose 12.9%. Online stores increased 14.2%.
In a conference call discussing result,s Indigo CEO Heather Reisman said that what she was particularly pleased about in the quarter was that “At the heart of the growth, which is really satisfying, is our core book business. We believe people are recognizing that books are a part of our lives that we will keep a part of our lives.”
She also noted that e-book sales have leveled off. “I think what people are saying is, e-reading is not going away — we continue to participate in that market — but increasingly, people are using it for certain things, like maybe when they’re flying, or when they can’t carry books around. Other than that, people seem to be happy reading their print books.”
During the quarter Indigo launched a new American Girl Specialty Boutique at the Toronto Eaton Centre store, alongside a complete renovation of the Books and Indigo Kids sections. Additionally, the company revitalized their plum rewards loyalty program to now include online collection and redemption of plum® points and an enhanced suite of member benefits based on customer feedback.
This story has been updated with new information.
