A mix of new outlets and strong comparable store sales lifted total revenue at Indigo Books & Music to C$171.2 million ($108 million) for the second quarter ended September 28, an increase of 9.8% over last year's second quarter. Helped by a 6.2% increase in same-store sales plus 12 new stores, revenue at Indigo's superstores rose 13.2% in the period, to C$118.2 million. The closing of nine mall stores offset a comparable-store sales gain of 5% to drive sales in that segment down 2.7%, to C$36.4 million.

Operating earnings in the quarter rose to C$2.3 million from C$1 million in the second quarter in fiscal 2002. The net loss was C$7.6 million, compared to C$31.3 million last year, a figure that included several one-time charges.

Heather Reisman, Indigo's CEO, credited better product selection, improved merchandising and better communication with the chain's suppliers for the stronger results. She said the company is "on the right track" as it enters the holiday season.