Indigo's search engine optimization was heavily affected by the attack, which happened in February, affecting the company's online traffic from internet searches, he said on a call with analysts Friday.
"While we have made substantial progress to achieve almost full operational function by the end of the quarter, the ransomware attack did have a material impact on quarterly sales," he said.
The company's ability to replenish inventory was also challenged, which impacted its retail and online assortment, while consumers were more sensitive to prices, he said.
The remarks by Ruis came the day after Indigo reported a loss of
Revenue for the
Indigo remains focused on lowering expenses, said Ruis. The company has reduced labour as well as warehousing and distribution costs, he said, and benefited from lower international freight prices.
"These savings were achieved despite the current state of a challenging macroeconomic environment," said Ruis.
These cost savings were partially offset by extra spending on the modernization of Indigo's e-commerce technology as well as higher occupancy costs, said chief financial officer
During the first quarter, customers showed they're more sensitive to prices through an increased penetration of promotions and higher sales during promotional periods, said Ruis.
"Inflation and interest rates are impacting customer behaviour, softening demand," he said.
Indigo has also launched its new website, he said, and will soon open a new flagship store at The Well building in downtown
As previously announced on
Shares in Indigo were flat at the end of the day Friday, at
This report by The Canadian Press was first published
Companies in this story: (TSX:IDG)
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