TORONTO - Indigo Books & Music Inc. reported a sales drop and a larger net loss for its first quarter.
The Toronto-based company says its revenue totalled $192.6 million for the period ended June 29, down $12.8 million from $205.4 million for the same quarter the previous year.
Comparable sales, including stores and e-commerce, fell 7.6 per cent.
Indigo says the drop in sales is the result of a strategic move to reduce promotional activity in an effort to boost profits and eliminate unprofitable sales.
The bookseller's net loss came in at $19.1 million or 69 cents per common share in the quarter compared with a net loss of $15.4 million or 57 cents per share in the first quarter of its 2019 financial year.
Analysts surveyed by financial markets data firm Refinitiv expected revenue of $237.2 million, and adjusted net loss of $12.45 million or 46 cents per share. The company didn't provide an adjusted loss for the quarter.
CEO Heather Reisman says in a statement that the company continues to face many of the same headwinds from last year, but remains confident in the steps it is taking to improve results.
Companies in this story: (TSX:IDG)