Canada-based book and lifestyle retailer Indigo Books & Music has reported that its revenue declined 0.4% to C$1.058bn ($804.001m) in fiscal year (FY) 2023 from C$1.062bn ($807.04m) in FY22.
For the 52 weeks ended 1 April 2023, the retailer’s adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) was a C$20.5m loss, compared to earnings of C$32.5m in FY22.
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Indigo also posted a net loss of C$49.6m in FY23 against net earnings of C$3.3m in the prior FY.
In the fourth quarter, the retailer saw its revenue decline to C$194.2m due to a ransomware attack.
The company’s net loss was C$42.5m over the quarter, against a loss of C$23.4m in the same period of FY22.
The ransomware attack, which happened on 8 February 2023, disrupted Indigo’s internal operational service of both sales channels.
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By GlobalDataThe attack resulted in a temporary suspension of the company’s e-commerce platforms, which were fully restored after four weeks.
Electronic payments were disrupted for approximately three days across its retail network.
Despite the attack, the company’s merchandise sales, which comprises retail and online businesses, increased by 0.5% to C$1.015bn over the year.
CEO Peter Ruis said: “This has been a turbulent year for Indigo, as the progress gained from our post-pandemic re-emergence was negatively impacted by adverse macro-economic factors. These headwinds were furthered by the ransomware attack in our fourth quarter.
“I am incredibly thankful for our incredible teams, who have been working tirelessly to bring operations back to normal. Through all of this, Indigo customers continued to show their loyalty to our brand and we are proud to have achieved merchandise sales growth.
“We are looking forward to injecting momentum back into the business in fiscal 2024 with the exciting launch of a new digital platform in the late Summer and our new flagship store at the Well, Toronto in September.”
