Led by Kobo e-readers and other nonbook items, sales at Indigo Books & Music rose 14%, to C$387.6 million, in the third quarter ended January 1. Profit in the quarter fell to C$30.2 million from C$34.5 million. Like Amazon with the Kindle and Barnes & Noble with Nook, Indigo said that Kobo e-readers were the "hottest items in our stores over the holidays." Gifts and toys also sold well and in a statement Indigo CEO Heather Reisman said the performance of those categories, "reinforced our decision to continue expanding these categories."
During the quarter, the Canadian retailer added more toys and lifestyle products to its online store and opened IndigoKids departments in seven stores and IndigoStudio pilot departments in two outlets.
On a same store basis, sales in the chain's superstores rose 2.6% in the quarter, but fell 0.8% in its smaller format Coles and Indigo Spirit outlets. Sales through chapters.indigo.ca were up 6.5%. Reisman said the profit decline was expected as the company continues to invest in its digital initiatives and gift and toy businesses.
For the first nine months of the year, revenue rose 8.9%, to $806.7 million, while earnings fell to C$23.1 million from C$34.4 million.
