Indigo records $57m loss, sales decline in fiscal 2023

Canada’s leading book retailer, Indigo Books & Music, recorded a small decline of 0.4% in sales in the year ending 1 April, while also recording a C$49.6 million (A$56.7m) loss for the year, compared to net profit of C$3.3 million (A$3.8m) in 2022, reports Publishers Weekly.

Profits were affected by continuing inflation, while a ransomware attack on the company’s online sales and internal logistics affected sales for more than a month. Indigo said costs associated with dealing with the crisis totalled C$5.2 million (A$5.9m), excluding lost revenue.

CEO Peter Ruis said it had been ‘a turbulent year for Indigo, as the progress gained from our post-pandemic re-emergence was negatively impacted by adverse macro-economic factors’. ‘These headwinds were furthered by the ransomware attack in our fourth quarter,’ Ruis said. ‘I am incredibly thankful for our incredible teams, who have been working tirelessly to bring operations back to normal.’

Online sales decreased 21.3%, while in-store revenue grew 10.6%, reflecting the post-pandemic return to in-store shopping. Print book sales declined by 3.7%, while non-book items and general merchandise sales were up 5.8%

Indigo operates 170 stores in Canada and one in New Jersey in the US.

Category: International news