A pedestrian passes an Indigo bookstore in downtown Montreal on May 19, 2020.Christinne Muschi/Christinne Muschi/The Globe and
Indigo Books & Music Inc. says it expects a “damaging set of conditions” for about a year from the COVID-19 pandemic.
Chief executive Heather Reisman says the company expects at least 10 to 12 months of difficulty stemming from the coronavirus outbreak.
The company, which released its fourth-quarter financial results after markets closed Tuesday, says it had expected its first-quarter to be strong and put it back on track to real profitability.
She says the coronavirus, which forced the retailer to close all its retail stores mid-March, is impacting that trajectory.
Indigo reported it lost $171.3 million or $6.22 per diluted share in the fourth quarter compared to a $23.8-million loss or 86 cents per share in the same quarter the previous year.
The Toronto-based book, gift and specialty toy retailer attributed the higher loss to impairment and deferred tax charges, as well as continuing to pay staff wages until the end of March despite store closures.
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