Indigo lost $50 million in its last fiscal year as its highly publicized cybersecurity incident walloped what was otherwise a profitable year, the book retailer said Wednesday.
The TSX-listed company posted financial results on Wednesday for the most recent quarter and full financial year up to April 1.
They showed that the book retailer posted revenue of $1.058 billion last year, a decline of $4.6 million, or 0.4 percent, from the previous year’s level. The previous year’s revenues were boosted by a one-time renegotiation of financial terms with one of the cafés that operate inside its stores, to the tune of $17 million.
In terms of core merchandise sales, the number grew by $4.6 million, or 0.5 percent, to $1.015 billion, compared with $1.010 billion in the prior year.
But a bad year-ago comparison was far from the company’s biggest problem. In February, Indigo was hit by a massive cyberattack that rendered its stores unable to process debit or credit card transactions for several days and wiped out online sales for almost a month.
“This had a material impact on sales and profitability in the fourth quarter and fiscal year,” the company said.
