Burnaby books and lifestyle retailer Indigo Books and Music Inc. reported increased revenue and reduced loss for its first quarter compared with the same period last year as its stores began to reopen from pandemic-related restrictions.
The company, which operates out of Metropolis at Metrotown, reported a revenue of $172 million for the three months ended July 3.
That compares to a revenue of $135 million in the same quarter last year.
Indigo reported a net loss of $21.9 million this quarter, compared to a net loss of $31.6 million in the same quarter last year.
The company noted the improved performance came despite continued closures during period in Ontario, where 50 per cent of Indigo's locations are located.
The bookstore chain is seeing rising sales thanks in part to an online community of TikTok users sharing videos reviewing and recommending books.
The viral videos with the hashtag #BookTok have attracted billions of views and are driving demand for books — often older, backlisted titles — benefitting book retailers and the publishing industry at large.
The #BookTok effect has ushered in a fresh sales boost after more than a year of grappling with pandemic restrictions and store closures.
"The popularity of reading on TikTok created a whole new level of reading excitement, particularly for teens, adding to an already strong performance in books," Indigo chief executive officer Heather Reisman said during a Friday conference call discussing the retailer's quarterly earnings.
Reisman said the financial results point to the beginning of a recovery in retail as the economy reopens.
"Our strong first quarter sales performance reflects the beginning of a welcomed recovery in retail, the continued strength of online and the Indigo brand in general," said Reisman.
"In addition, it is a testament to our teams' successful management of store re-openings for over half our retail fleet and thoughtful inventory management."
- With files from the Canadian Press
