Indigo Books & Music, the country’s self-proclaimed leading “books and lifestyle retailer,” this week reported a revenue increase of 16% for the second quarter, beating the same period last year and pre-pandemic revenue levels. The publicly traded company reported revenue of $238.8 million for the thirteen weeks ending October 2, 2021. Adjusted EBITDA were $10.6 million compared to the same period last year, which saw a loss of $11.3 million.
The company says that the revenue boost occurred notwithstanding lower foot traffic in major metropolitan stores due to ongoing pandemic-related restrictions. “Retail does remain traffic-challenged,” the company notes in a press release, “but customers who came to shop demonstrated a strong commitment to books and a continuing positive response to our lifestyle offering.”
Indigo saw a reported 85% growth online year-over-year.
The company also noted a one-time payment of $17 million resulting from a renegotiation of its partnership agreement with Starbucks, which operates cafés inside several locations nationwide. In the future, Indigo plans to continue operating Starbucks locations in thirty-six stores, with the remainder “reimagined under the evolving Indigo brand retail experience.”
Company CEO Heather Reisman was enthusiastic about the public’s embrace of “all aspects of our omnichannel approach” during the ongoing pandemic, hinting that Indigo’s pivot to lifestyle will only continue in the months to come. Whether this is at the further expense of their bookselling business is an open question, as are the effects of supply chain issues threatening the current holiday selling season.