Retailer Roots reports $8M Q1 loss, sales down from year ago
By The Canadian Press on June 8, 2023.
TORONTO – Roots Corp. reported a first-quarter loss of $8 million compared with a loss of $5.3 million a year earlier, as its sales edged down on lower demand for its popular sweatpants. Roots chief executive Meghan Roach says the results aligned with the company’s internal projections and reflected a challenging economic environment. The retailer says the loss amounted to 19 cents per diluted share for the quarter ended April 30 compared with a loss of 13 cents per diluted share in the same quarter last year. Sales in the quarter totalled $41.5 million, down from $43.1 million a year ago. Roots says the decline in sales came as its direct-to-consumer sales amounted to $35.4 million, down from $37.4 million in the same quarter last year. Partner and other sales, which includes wholesale Roots branded products, licensing to select manufacturing partners and the sale of certain custom products, totalled $6.1 million, up from $5.7 million a year ago. Roach noted the company saw strength in sales of its dresses, skirts and activewear. “While softness in demand for traditional fleece bottoms resulted in an overall year-over-year sales decline, our success in broadening our product range underscores the capacity of the brand to diversify and attract new customers,” Roach said in statement. This report by The Canadian Press was first published June 8, 2023. Companies in this story: (TSX:ROOT) 11-10
