Despite the lack of a major title or trend during the holidays, the season was good to Indigo Books & Music, which is reporting a 4.5 per cent increase in revenue for its third quarter.
Indigo reported revenue of $400.3 million, up $17.1 million over the same period last year, which ended Dec. 31, despite operating three few stores.
In a conference call to investors on Feb. 8, CEO Heather Reisman described a quarter that started strong in October, but saw a decrease in sales in November, which Reisman attributes to “post-election malaise,” then a “strong holiday finish.” She credits the revenue increase to Indigo’s lifestyle and general merchandise categories. Book sales remained flat, in part because 2015’s “massive, massive hit,” the adult colouring book trend, has wound down, which Reisman says further reinforces physical books as a core business.
Despite some fulfillment issues, Indigo’s online business was also strong, with the exception of ebook sales, which continued to decrease.