* Q2 loss C$0.07/shr vs year ago EPS C$0.09
* Revenue up 4 percent
* Same-store sales down 1 pct at Indigo, Chapters
* Same-store sales down 5 pct at small-format stores
TORONTO, Nov 9 (Reuters) - Indigo Books & Music (IDG.TO), Canada’s biggest book retailer, fell short of analyst estimates on Tuesday by posting a quarterly loss as the company invested heavily in digital initiatives and store redevelopment.
Indigo posted a loss of C$1.8 million ($1.78 million), or 7 Canadian cents a share, for the three months ended Oct. 2, compared with a profit of C$2.2 million, or 9 Canadian cents, a year earlier.
Revenue rose 4 percent to C$214.8 million.
Analysts, on average, had expected the company to break even in the quarter, on revenue of C$220.2 million, according to Thomson Reuters I/B/E/S.
At its Indigo and Chapters superstores, same-store sales, or sales in stores opened at least a year, dropped about 1 percent, while same-store sales at its small-format stores fell 5 percent.
The company released its results after markets closed. Its shares rose 35 Canadian cents to close at C$15.50 on the Toronto Stock Exchange on Tuesday.
$1=$1.00 Canadian Reporting by Bhaswati Mukhopadhyay; Editing by Frank McGurty