Harry Potter conjures profits for Indigo Books

Indigo Books and Music swung to profitability in the second quarter on higher sales, with Canada's biggest book retailer crediting the latest Harry Potter release with some of the magic.

Indigo (TSX:IDG) said it made $1.1 million in Q2 (4 cents a share), compared to a loss of $7.8 million (32 cents a share) in the same quarter a year earlier.

Revenues rose 10.8 per cent to $186.7 million. Indigo's online channel saw its sales climb 40.3 per cent to $19.5 million.

"The release of Harry Potter and the Half-Blood Prince had a material impact on the quarter," Indigo said in a statement.

Excluding that title, it said comparable store sales grew by 6.9 per cent.

"Results this quarter show very satisfying momentum," said Indigo CEO Heather Reisman.

"Clearly, supply chain improvements, a continued focus on customer service, and in-store merchandising combined to improve performance overall."

The sixth instalment in the Harry Potter series went on sale July 16. Specific Canadian sales haven't been released, but a spokesperson at Indigo Books said in July that the chain sold about 1,200 books a minute during the first two hours of its release.