In its second-largest acquisition, Amazon buys the company for $970 million.
Internet sales decline year over year by 7%.
Web sales took another turn downward for Canadian books retailer Indigo Books & Music Inc. in the second quarter of fiscal 2011, the retailer reported in its recently filed quarterly financial report.
For the second quarter ended Oct. 2 Indigo reported:
- Web sales declined 7% to C$18.6 million (US$18.5 million) from C$20.0 million (US$19.9 million).
- Total sales increased 11% to C$214.8 million (US$213.9 million) from C$193.6 million (US$192.8 million) in the first quarter of fiscal 2010.
- Comparable-store sales for superstores decreased 0.7% while same-store sales for small-format stores decreased 4.8%.
- Net loss was C$1.7 million (US$1.69 million) compared with a net profit of C$2.2 million (US$2.19 million) in the prior year.
“The increased loss was expected as we continue to invest in the growth and development of our digital initiatives and the re-development of our stores to accommodate growth in our gift and toy businesses,” says CEO Heather Reisman.
Internet Retailer calculates the web accounted for 8.7% of sales compared with 10.3% in the prior year.
For the first two quarters Indigo reported:
- Web sales declined 3.6% to C$37.7 million (US$37.6 million) from C$39.1 million (US$38.9 million) in the first half of fiscal 2010.
- Total sales increased 4.6% to C$419.1 million (US$417.5 million) from C$400.5 million (US$398.9 million).
- Net loss was C$7.1 million (US$7.07 million) compared with a net loss of C$104,000 (US$103,600 million) in the prior year.
Internet Retailer calculates the web accounted for 9% of sales compared with 9.8% in the prior year. Indigo is No. 161 in the Internet Retailer Top 500 Guide.