By The Canadian Press on February 9, 2024.
TORONTO – Indigo Books & Music Inc.’s chief executive says the retailer’s last year has been “challenging” and it could be a while until its financial results recover.
Heather Reisman told analysts on a call that Indigo spent 2023 marred in “disruptions” like a ransomware attack that downed its e-commerce operations for a lengthy period and the “premature” launch of a new platform meant to replace it.
She says Indigo also overbought some merchandise and faced a “challenging” economic environment.
To transform the company, Reisman says she has had to lay off an unspecified number of staff, take a closer look at merchandise and work through some of the e-commerce issues that have arisen.
She says it will take time before analysts and investors start seeing Indigo’s full potential show up in its financial results.
Indigo saw its most recent quarterly earnings drop roughly 70 per cent to $10 million from $34.3 million a year earlier.
This report by The Canadian Press was first published Feb. 8, 2024.
Companies in this story: (TSX:IDG)