TORONTO - Books and lifestyle retailer Indigo Books and Music Inc. says a surge in online purchases helped revenues to surpass pre-pandemic levels in its latest quarter.

The Toronto-based company says revenues for the three months ended Oct. 2 were $238.8 million, up from $205.3 million in the second quarter of 2020 despite occupancy constraints in several key markets.

Indigo says the revenue improvements came from its e-commerce business, which grew 85 per cent from the prior-year quarter.

While retail at stores remains challenged, it says customers who came to shop demonstrated a strong commitment to books and responded positively to its other offerings.

Net earnings were $3.5 million or 13 cents per share, compared with a net loss of $17.5 million or 63 cents per share.

The company says it received a one-time payment of $17 million from a renegotiation of its partnership with Starbucks, with 36 cafes continuing to operate within its stores.