Indigo reports loss in absence of hit trilogies

TORONTO – Indigo Books and Music Inc. (TSX:IDG) said Wednesday it lost $15 million in its latest quarter as sales fell compared with a year ago when they were boosted by the success of the Fifty Shades of Grey and Hunger Games trilogies.

The book retailer said the loss amounted to 59 cents per share in its latest quarter compared with a loss of $5.5 million or 22 cents per share a year ago.

Revenue totalled $171.5 million, down from $186.6 million.

“The decrease was primarily the result of the decline in hit-related book sales, higher inventory markdown as well as intentionally higher selling and administrative expenses compared to last year,” the company said in a statement.

Excluding revenue from the two hit trilogies, Indigo said revenue was down 1.3 per cent compared with a year ago.

On a same-store basis, Indigo and Chapters superstores sales were down 7.3 per cent, while Coles and IndigoSpirit small-format stores were down 13.1 per cent.

Excluding the big trilogies, same-store sales were down 1.6 per cent at the superstores and increased 1.1 per cent at the small-format stores.

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