Indigo Books & Music Inc. says it earned $21.8 million last year in an improvement from a year earlier but below analyst expectations.
The net income for the year ending March 31, amounting to 81 cents per share, was up from $20.9 million or 79 cents per share a year earlier, as total revenue increased by 5.8 per cent and comparable sales increased by 6.2 per cent.
Earnings were, however, lower than the estimate of $28.66 million by analysts, according to Thomson Reuters Eikon.
The company says revenue growth was driven by continued double-digit growth in general merchandise, including lifestyle products and toys, while book sales declined slightly compared to a year earlier when the release of Harry Potter and the Cursed Child boosted book sales.
Indigo says profits were also hit by the increase in the minimum wage in Ontario and higher fixed costs from expanded distribution centres in Ontario and Alberta.
The company says it had a net loss of $10.7 million or 40 cents per share in the quarter ending March 31, compared to a loss of $8.9 million or 33 cents for the same quarter a year earlier.