Indigo Books and Music Inc. says it lost $25.4 million in the 13-week period ended July 2 in spite of double-digit sales growth in both its print and general merchandise categories.
Canada’s largest book and lifestyle retailer says its net loss in its first quarter of its 2023 fiscal year works out to 91 cents per basic common share, compared to a net loss of $21.9 million or 79 cents per basic common share in the same period one year ago.
Indigo attributed the loss to macro-economic conditions including supply chain disruptions, higher freight costs and inflationary pressures.
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The company says its first-quarter loss also reflects the federal government’s ending of the Canada Emergency Wage Subsidy and the Canada Emergency Rent Subsidy.
Its external COVID-19 financial support declined year-over-year for the quarter from $7.3 million to $1 million as a result of the ending of these programs.
Indigo says its revenue in the quarter increased $32.5 million, or 18.9 per cent, to $204.6 million, exceeding the company’s top-line first-quarter performance in the preceding three fiscal years.
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