Post by oceanelevenon Jun 26, 2020 8:15am
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Post# 31194073
Yikes!!!!
Yikes!!!!The Financial Post reports in its Friday edition that Indigo Books & Music was returning to profitability right up until COVID-19 hit. A Bloomberg dispatch to the Post reports that instead, it posted a $171-million loss in the fiscal fourth quarter ended in March and expects a "damaging" year ahead. A Bloomberg dispatch to the Post reports that Indigo was on the road to end the fiscal year with "essentially flat" adjusted earnings before interest, taxes, depreciation and amortization, and then "return to profitability," reflecting the retailer's attempts to "position the company to be able to thrive in a vastly changed environment." With the onset of COVID-19, Indigo now faces a "damaging set of conditions," says chief executive officer Heather Reisman. Last week, Ms. Reisman called on the federal government to make "truly low-cost loans" to retailers to avoid heavy job losses. The path forward will not be easy as consumers scale back discretionary purchases, says University of Toronto marketing professor David Soberman. Indigo's market value shrank to just $25-million on Thursday, about a tenth of what the company was worth in July, 2019. The stock is trading at its lowest since going public in 1996.