TORONTO - A weaker Canadian dollar left a mark on the bottom line of Indigo Books & Music Inc. (TSX:IDG) in the latest quarter.
The company's chief financial officer Laura Carr says the company took a $3 million hit on its bottom line during the first quarter ended June 27, a direct impact from the exchange rate with the U.S. dollar.
The details were disclosed in a conference call with analysts on Wednesday after Indigo reported its financial results a day earlier.
Carr said Indigo managed to absorb the effect of the exchange rate by funnelling the costs into its book and merchandise prices and securing better agreements with its suppliers by increasing the volume of its orders.
Book and magazine prices are often a hot topic when currency exchange rates dramatically fluctuate, partly because it's one of the few retail goods that lists how much they cost in each currency on the same product.
When the value of the loonie soared to near par with the American dollar several years ago, some consumers complained they were paying excessive markups on books when factoring in the better exchange rate.
