In its second-largest acquisition, Amazon buys the company for $970 million.
E-commerce and total sales increased 1.1% and 1.8%, respectively.
Even though it’s transitioning into becoming a broader online merchant, Canada’s biggest books chain retailer ended the second quarter of fiscal 2012 with only a small increase in e-commerce revenue.
For the second quarter of fiscal 2012 ended Oct. 1, Indigo Books & Music Inc., No. 177 in the Internet Retailer Top 500 Guide, reported:
- E-commerce sales increased year over year 1.1% to $C18.8 million (US$18 million) from $C18.6 million (US$17.7 million).
- Total sales increased about 1.8% to $C218.5 million (US$208.6 million) from $C214.7 million (US$205.1 million) in Q2 fiscal 2011.
- Superstore sales increased 0.9% to $C142.1 million (US$135.7 million) from $C140.9 million (US$134 million).
- Small-format store sales decreased 5% to $C30.4 million (US$29 million) from $C32 million (US$30.6 million).
- Comparable-store sales decreased 4.8% in superstores and 4% in small-format stores.
Net loss was $C40.3 million (US$38.5 million) compared with a net loss of $C4.4 million (US$4.2 million) in the prior year. The net loss widened in the second quarter as a result of a one-time goodwill impairment charge of $25.4 million for an accelerated transition from physical books to digital books and increased investment in its digital business, the company says.
Internet Retailer calculates the web accounted for 8.6% of total sales compared with 8.7% in the second quarter of fiscal 2011.
For the first two quarters:
- Indigo did not break out total e-commerce sales.
- Total sales increased about 0.4% to $C420.6 million (US$419.1 million) from $C419.1 million (US$401.9 million) in the first two quarters of fiscal 2011.
- Net loss was $C64.6 million (US$61.6 million) compared with a net loss of $C11.9 million (US$11.3 million) in the prior year.
In the second quarter Indigo also sold its Kobo electronic book reader business to Japanese online marketplace operator Rakuten Inc. $315 million in cash.
“Notwithstanding the sale, Indigo will maintain a very strong relationship with Kobo, supporting the products and the services both in store and online and directly benefiting from the growth of the Canadian e-reading market,” says CEO Heather Reisman.