Indigo Books and Music third-quarter profit down from year ago, revenue up

TORONTO – Indigo Books and Music Inc. (TSX:IDG) said Tuesday that it earned $8.5 million in its latest quarter, down from $22 million a year ago, as sales improved three per cent.

The retailer said the profit amounted to 33 cents per share for the quarter ended Dec. 28, down from 86 cents per share a year earlier, due to a one-time tax charge.

Excluding the valuation allowance, Indigo said it would have earned $20.9 million or 82 cents per share for the quarter.

Sales for 13-week period totalled $332.4 million, up from $322.6 million.

On a same-store store basis, sales at Indigo and Chapters superstores were up 2.6 per cent, while small format store same-store sales were up 0.5 per cent.

Online sales increased 19.3 per cent to $41.5 million from $34.8 million a year ago.

“It is very satisfying to see the company achieve this positive growth — particularly given the impact of unusually bad weather this holiday season,” chief executive Heather Reisman said in a statement.

“Clearly the investments we are making to transform Indigo are resonating with our customers.”

Indigo operates under several banners including Indigo Books and Music, Indigospirit, Chapters, the World’s Biggest Bookstore and Coles.

Shares in Indigo, which released its results after the close of markets, were down three cents at $8.42 on the Toronto Stock Exchange on Tuesday.