During the second quarter, Indigo Books has experienced a net loss of about $31.6 million for the 13 weeks ended June 27th, compared to a net loss of about $19.1 million in the same quarter the previous year. This was basically a 30% drop in revenue, primarily due to all of their book stores being closed during the pandemic and online sales were not strong enough to offset it.
Commenting on the results, CEO Heather Reisman said: “Despite the unparalleled challenges we faced in the first quarter, we are extremely pleased with the way our entire organization adapted to the unprecedented demands to both adjust the business and meet the needs of our customers. We are also buoyed by the level of customer engagement with us. This uniquely disruptive period has driven significant customer acquisition, plum member sign ups and encouraged our loyal customers to further embrace our digital experience, signifying the strength of our brand. We have no doubt we will emerge stronger than ever when the clouds of COVID-19 are lifted.”
The company says it reduced discretionary spending and its workforce during the quarter, and closed on a $25-million, interest-free revolving credit facility this month from a company controlled by Gerald Schwartz, a controlling shareholder of Indigo.
Michael Kozlowski is the Editor in Chief of Good e-Reader. He has been writing about audiobooks and e-readers for the past ten years. His articles have been picked up by major and local news sources and websites such as the CBC, CNET, Engadget, Huffington Post and the New York Times.