Indigo Reports FY24 Third Quarter Results



TORONTO, Feb. 8, 2024 /CNW/ – Indigo Books & Music Inc. (TSX:IDG), Canada’s leading book and lifestyle retailer, reported financial results for the 13-week period ended December 30, 2023 compared to the 13-week period ended December 31, 2022.

The Company recognized total revenue of $370.6 million in the quarter, compared to revenue of $422.7 million in the same period last year. Disruptions throughout 2023, including the ransomware attack and the pre-mature launch of a new digital platform, negatively impacted the Company’s ability to serve its customers. This was most significantly felt in the online channel, which disproportionally underperformed compared to the retail network. Prevailing economic headwinds also impacted consumer spending patterns as customers continued to show price sensitivity, noted by lower full-priced sell through.

The Company recognized decreased revenue in both its general merchandise and print product lines. General merchandise suffered from a less successful product assortment, missing certain key top-selling holiday products. On the book side of the business, top-selling releases of the quarter were not as strong as last year, leading to lower sales in this category. 

Commenting on the results, CEO Heather Reisman said: “These results are disappointing and in no way reflect the opportunity we have with our customers. We are deeply and effectively engaged in a turnaround. I feel confident that with the current focus, we will fully reclaim our position as the booklovers’ happy place, both in store and online.”

Adjusted EBITDA for the quarter was $22.3 million, compared to $40.8 million in the prior year. The aforementioned impacts of the current macro-economic environment led to an increased penetration of promotions and discounts. The Company deeply discounted product, a decision made to fully clear unproductive inventory which it does not intend to carry forward as part of its assortment.  

During the quarter, the Company undertook several steps aimed at improving customer engagement and the overall economics of the business including enriching book assortment, simplifying and improving lifestyle assortment and streamlining the organization and head office workforce. Improving customer engagement and profitability is the full focus for the Company.   

Driven by the sales and margin declines as well as significant restructuring costs, net income for the quarter totaled $10.0 million ($0.36 net income per basic common share) compared to net income of $34.3 million ($1.23 net income per basic common share) in the prior year.

Subsequent to quarter end, the Company amended and extended its revolving credit facility with Trilogy Retail Holdings Inc. (“TRHI”), as lender. The material terms of the amendment are limited to (i) an increased principal credit amount to up to $70.0 million and, with the consent of TRHI, this amount may be increased by up to an additional $10.0 million; (ii) an extended maturity date to December 31, 2024; and (iii) a revised interest rate to the Royal Bank of Canada prime rate from time to time in effect +2.5%. The amended credit facility, the effectiveness of which is subject to certain customary conditions precedent which are expected to be satisfied in the coming days, will be used for ongoing working capital needs and general corporate purposes of the Company, and for non-recurring restructuring costs and capital expenditures agreed between the Company and TRHI from time to time. It was issued on reasonable commercial terms, and is not convertible, directly or indirectly, into equity or voting securities.

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, February 9th, 2024.  

To join the conference call without operator assistance, you may register and enter your phone number at to receive an instant automated call back.  

The call can also be accessed through an operator by dialing 416-764-8659 from within the Toronto area, or 1-888-664-6392 outside of Toronto. The eight-digit participant code is 15865756. 

A playback of the call will also be available by telephone until 11:59 p.m. (ET) on February 16th, 2024. The call playback can be accessed after 12:00 p.m. (ET) on February 9th, 2024, 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 865756#. The conference call transcript will be archived in the Investor Relations section of the Indigo website,

Forward-Looking Statements 
Statements contained in this news release that are not historical facts are “forward-looking information” within the meaning of applicable Canadian securities legislation. To the extent any forward-looking information constitutes “financial outlooks” within the meaning of applicable Canadian securities laws, such information is being provided as preliminary financial and operational results. Financial outlooks, as with forward-looking information generally, are, without limitation, based on the assumptions and subject to various risks and uncertainties that could cause actual results to differ materially from those expressed in or implied in this news release. Among the key factors that could cause such differences are: general economic, market or business conditions, which include geopolitical events such as war, acts of terrorism, and civil disorder and the adverse impacts of inflationary pressures; ongoing impacts to consumer behaviour from the ransomware attack; the future impacts and government response to the COVID-19 pandemic, including any impact to online and/or retail operations of the Company; competitive actions by other companies; changes in laws or regulations; and other factors, many of which are beyond the control of the Company, as set out in the Company’s annual information form dated June 27, 2023 and available on the Company’s issuer profile on the SEDAR+ website at  

Undue reliance should not be placed on such forward-looking information and no assurance can be given that such events will occur in the disclosed time frames or at all. Any forward-looking information included in this news release is made as of the date of this news release and the Company does not undertake an obligation to publicly update such forward-looking information to reflect new information, subsequent events or otherwise unless required by applicable securities laws.  

Non-IFRS Financial Measures 
The Company prepares its consolidated financial statements in accordance with International Financial Reporting Standards (“IFRS”). In order to provide additional insight into the business, the Company has also provided non-IFRS data, specifically Adjusted EBITDA, in this news release. These measures do not have standardized meanings prescribed by IFRS and are therefore specific to Indigo and may not be comparable to similar measures presented by other companies.  

For additional context see “Results of Operations” and “Non-IFRS Financial Measures” in the Management’s Discussion and Analysis (which can be found at or 

About Indigo Books & Music Inc. 
Indigo is a publicly traded Canadian company listed on the Toronto Stock Exchange (IDG). Indigo is Canada’s leading book and lifestyle retailer, offering a curated assortment of books, gifts, home, wellness, fashion, paper, baby and kids products, that support customers by simplifying their journey to Living with Intention. The Company operates retail stores in all ten provinces and one territory in Canada, and also has retail operations in the United States through a wholly-owned subsidiary, operating one retail store in Short Hills, New Jersey. Retail operations are integrated with the Company’s digital channels, including the website and the mobile applications, which are extensions of the physical stores and offer customers an expanded assortment of book titles, along with a meaningfully curated assortment of general merchandise. Indigo believes in real books, in living life fully and generously, in being kind to each other and that stories – big and little – connect us. 

The Company supports a separate registered charity, called the Indigo Love of Reading Foundation (the “Foundation”), which is committed to addressing educational inequality, and more specifically, the literacy crisis in Canada. The Foundation provides resources including new books and learning materials, training and year-round curation support to help ensure teachers, education staff, school administrators and other key stakeholders have the tools they need to promote literacy in their communities. With the support of the Company, its customers, employees, and suppliers, the Foundation has committed over $35.0 million to more than 1,000,000 students across Canada since 2004.  

To learn more about Indigo, please visit the “Our Company” section at  


Consolidated Balance Sheets


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