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.
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