Watch Live: CityNews at Six Vancouver

Indigo swings to near $40M yearly loss partly due to Canada Post strike impact

TORONTO — Indigo Books & Music Inc. widely missed expectations as it swung to a nearly $40-million net loss for its 2019 financial year, partly due to the Canada Post strike and less consumer spending in the final quarter.

The Toronto-based company reported a net loss of $36.8 million or $1.35 per common share for the year ending March 30, compared with net earnings of $22 million or 82 cents per common share the previous year.

Revenue for the year dropped $32.8 million or three per cent to about $1.05 billion from roughly $1.08 billion the previous year.

Analysts surveyed by Thomson Reuters Eikon expected a net loss of $9.3 million or 34 cents per share on $1.065 billion of revenues.

Comparable sales, a key retail metric, dropped 1.1 per cent.

Revenue challenges arose from, among other things, a Canada Post strike, as well as a pullback in consumer spending on non-essential items in the fourth quarter.

The company says net loss for the quarter amounted to $23.8 million, compared with a $10.7-million loss last year.

Fourth-quarter revenues fell 7.5 per cent to $199.2 million, and comparable sales dropped 8.7 per cent.

Indigo was expected to earn $3.7 million in the quarter on $210.7 million in revenues.

CEO Heather Reisman says in a statement that “we have every confidence in the investments we have made, in our customers’ deep affection for our brand, and in our mission to enrich the lives of Canadians.”

 

Companies in this story (TSX:IDG)

The Canadian Press

Top Stories

Top Stories

Most Watched Today