Comp Superstore Sales grow by 13.6%
Online Sales grow by 14.2%

TORONTO, Nov. 3, 2015 /CNW/ - Indigo Books & Music Inc. (TSX: IDG), Canada's largest book, gift and specialty toy retailer reported 8.8% growth in revenue for its second quarter ended September 26, 2015.

Revenue for the quarter was $205.7 million, up $16.7 million from last year, despite operating two fewer superstores and four fewer small format stores.  On a comparable store basis, Indigo and Chapters superstores posted 13.6% growth, while Coles and IndigoSpirit small format stores increased by 12.9%. Sales from Indigo's online channel, indigo.ca, grew by 14.2%.

Revenue growth was driven by continued double digit growth in the general merchandise business, mainly in Paper and Toys, and strong growth in the core book business, boosted by the trend for adult colouring books.

Commenting on the results, CEO Heather Reisman said, "We are pleased with this quarter's results.  Up against a tough comp from last year, we have demonstrated that we are consistently growing the business and improving profitability."

The net loss for the 13-week period ended September 26, 2015 was $1.8 million (net loss per common share of $0.07), compared to a loss of $8.5 million (net loss per common share of $0.33) for the period ended September 27, 2014.  The improvement of $6.7 million was driven by increased revenue performance and a higher margin rate.

During the quarter Indigo launched a new American Girl® Specialty Boutique at the Toronto Eaton Centre store, alongside a complete renovation of the Books and Indigo Kids sections.  Additionally, the Company revitalized their plum® rewards loyalty program to now include online collection and redemption of plum® points and an enhanced suite of member benefits based on customer feedback.

Analyst/Investor Call

Indigo will host a conference call for analysts and investors to review these results at 10:00 a.m. (ET) tomorrow, November 4th, 2015.  The call can be accessed by dialling 416-764-8688 from within the Toronto area, or 1-888-390-0546 outside of Toronto.  The eight digit participant code is 34060006.

A playback of the call will also be available by telephone until 11:59 p.m. (ET) on Wednesday November 11th, 2015.  The call playback can be accessed after 12:00 p.m. (ET) on November 4th, 2015, 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 060006#.  The conference call transcript will be archived in the Investor Relations section of the Indigo website, www.indigo.ca.

Forward-Looking Statements

Statements contained in this news release that are not historical facts are forward-looking statements which involve risk and uncertainties that could cause results to differ materially from those expressed in the forward-looking statements. Among the key factors that could cause such differences are: general economic, market or business conditions in Canada; competitive actions by other companies; changes in laws or regulations; and other factors, many of which are beyond the control of the Company.

Non-IFRS Financial Measures

The Company prepares its unaudited interim condensed consolidated financial statements in accordance with International Financial Reporting Standards and International Accounting Standards 34, "Interim Financial Reporting."  In order to provide additional insight into the business, the Company has also provided non-IFRS data, including comparative store sales growth, in the press release above. This measure does not have a standardized meaning prescribed by IFRS and is therefore specific to Indigo and may not be comparable to similar measures presented by other companies. Comparative store sales growth is a key indicator used by the Company to measure performance against internal targets and prior period results. This measure is commonly used by financial analysts and investors to compare Indigo to other retailers. Comparable store sales are defined as sales generated by stores that have been open for more than 12 months on a 52-week basis.

About Indigo Books & Music Inc.

Indigo is a publicly traded Canadian company listed on the Toronto Stock Exchange (IDG). As the largest book, gift and specialty toy retailer in Canada, Indigo operates in all provinces under different banners including Indigo Books & Music; Indigo Books, Gifts, Kids; Indigospirit; Chapters; and Coles. The online channel, indigo.ca, offers a one-stop online shop with a robust selection of books, toys, home décor, stationery, and gifts.

Indigo founded the Indigo Love of Reading Foundation in 2004 to address the underfunding of public elementary school libraries. Every year the Indigo Love of Reading Foundation grants $1.5 million to 20 high-needs elementary schools so they can transform their libraries with the purchase of new books and education resources. To date, the Indigo Love of Reading Foundation has committed over $20.5 million to over 2,000 schools through our signature programs.

To learn more about Indigo, please visit the Our Company section at indigo.ca.

SOURCE Indigo Books & Music Inc.