TORONTO, Aug. 12, 2021 /CNW/ - Indigo Books & Music Inc. (TSX: IDG), Canada's largest book and lifestyle retailer reported financial results for the 13-week period ended July 3, 2021 compared to the 13-week period ended June 27, 2020.
Revenue for the quarter increased $37.0 million or 27% to $172.1 million as many regions within the Company's retail channel rebounded, driving double-digit growth in both the Company's book and general merchandise businesses. Notably, the Company experienced a surge in demand for its book business from a younger demographic, fueled by the popularity of reading on TikTok (#BookTok.) Revenue was further buoyed by the success of an expanded assortment under the Company's proprietary lifestyle brand OUI, showcasing customers' affinity for both core categories and new product assortment. These results were achieved despite Ontario closures, with over fifty percent of the Company's store locations impacted by mandatory closures in the first nine weeks.
The Company is well-positioned with an omnichannel strategy that strongly resonated; in addition to the noted retail recovery, the online business sustained growth around three times its pre-COVID fiscal 20 levels and revenues through store-pick up capabilities grew nearly five times from the same period last year.
Commenting on the results, CEO Heather Reisman said: "our strong first quarter sales performance reflects the beginning of a welcomed recovery in retail, the continued strength of online and the Indigo brand in general. In addition, it is a testament to our teams' successful management of store re-openings for over half our retail fleet and thoughtful inventory management. These results validate our ability to evolve with changes in our environment, as we focus on delivering a return to full-year adjusted EBITDA profitability."
Adjusted EBITDA for the quarter was a loss of $14.9 million compared to a loss of $23.7 million for the same period last year. This improvement was driven by strong sales performance and stronger merchandise margins across all channels as a result of lower promotional discounting. These year-over-year improvements are also notable given a decline in external COVID-19 labour support provided in the current year and an increase in retail operating expenses associated with store re-openings. Indigo reported a net loss of $21.9 million ($0.79 net loss per basic common share) compared to a net loss of $31.6 million ($1.15 net earnings per basic common share) last year for the reasons discussed.
With no outstanding debt, a cash balance of $81.4 million and a $25.0 million revolving credit facility, the Company continues to be well positioned to manage through to its full COVID-19 recovery.
Analyst/Investor Call
Indigo will host a conference call for analysts and investors to review these results at 9:00 a.m. (Eastern Time) tomorrow, August 13th, 2021. The call can be accessed by dialing 416-764-8659 from within the Toronto area, or 1-888-664-6392 outside of Toronto. The eight-digit participant code is 57914038.
A playback of the call will also be available by telephone until 11:59 p.m. (ET) on August 20th, 2021. The call playback can be accessed after 12:00 p.m. (ET) on August 13th, 2021, by dialing 416-764-8677 from within the Toronto area, or 1-888-390-0541 outside of Toronto. The six-digit replay passcode number is 914038. The conference call transcript will be archived in the Investor Relations section of the Indigo website, www.indigo.ca.