Total revenues at Indigo Books & Music rose 7.2%, to C$735.5 million ($478 million), for the fiscal year ended March 30, 2002. Net loss for the year was cut to C$47.9 million from C$84.5 million. Moreover, the book retailer reported earnings before restructuring and interest charges of C$5.6 million in the year, compared to a loss of C$73 million in the previous year. Figures combine the results from Indigo and Chapters, which Indigo acquired last June (News, June 18).
Indigo CEO Heather Reisman said the results show that Canada's largest bookstore chain is beginning to turn around its financial performance. "We are 12 months into what I have always believed would be a two-year turnaround, but we are clearly on our way," Reisman said.
Revenues at the company's superstores increased 18.8%, to C$485.8 million, due to the opening of 16 new stores and a comparable-store sales increase of 1.1%. Revenues at the company's traditional stores fell 5.8%, to C$183.8 million, as Indigo operated 17 fewer stores in fiscal 2002 than in the previous year. Same-store sales were up 3.7%. Indigo's retail operations generated earnings before interest, taxes, amortization and restructuring charges of C$38.9 million, up from a loss of C$10.2 million in fiscal '01. Restructuring charges totaled C$40.3 million last year, primarily because of store closures and costs associated with the Chapters-Indigo merger. The charges also include costs related to closing five to seven of the 23 stores that Indigo was ordered by the government to sell, but for which no buyer could be found.
In its online operations, "significant" reductions in operating costs cut the loss to C$1.9 million from C$31.2 million. Revenues fell 32%, to C$34.7 million.
