Following reports of solid gains in the holiday period by its American bookstore counterparts, Canada's dominant bookstore chain, Indigo Books & Music, said that total sales for the third quarter ended December 31, 2001, increased 10.6%, to C$273.9 million ($172.5 million). Excluding its online operations, where sales fell 32.9%, to C$10.4 million, total retail revenues were up 13.5%, to C$263.5 million. Net income in the quarter jumped 109%, to C$18.8 million.
The sales increase was led by a 26% gain, to C$176.1 million, in the company's superstore division, which Indigo attributed to the addition of 16 new stores and a 1.9% increase in comparable-store sales. Same-store sales were especially strong in December, up 5.7% over December 2000. Sales through traditional stores fell 6.8%, to C$72.4 million, as a 3.9% increase in comparable-store sales was offset by the closing of 27 outlets. The sales decline at Indigo's Internet unit was due to reduced marketing and promotional efforts as well as less discounting. The loss in the online division fell C$5.9 million, to C$71,000, in the quarter.
For the nine-month period, total sales rose 4.9%, to C$565 million, with retail sales ahead 8.2%, to C$538.4 million. Online sales were down 35%, to C$26.6 million. Indigo had a net loss in the period of C$19.4 million (a figure that includes a C$21-million write-off), compared to a loss of C$11.5 million in the first nine months of fiscal 2001.
Indigo also noted that it plans to close "a few" of the 23 stores that reverted to its ownership after a court-appointed trustee was unable to find a new owner for the outlets (News, Jan. 14).
