TORONTO — Roots Corp. share prices dropped to their lowest point since the heritage clothing brand went public last October as second-quarter earnings fell short of analysts’ expectations.
The Toronto-based company reported a net loss of $4.08 million, up from a net loss of $8.34 million in the second quarter of last year.
It had an adjusted net loss of $0.06 per share in the quarter ended Aug. 4.
Analysts surveyed by Thomson Reuters Eikon were expecting a loss of $0.02 per share.
Roots shares fell more than 11 per cent to $8.28 in mid-morning trading Wednesday, down roughly one-third from its IPO price of $12 on Oct. 25.
Roots says its sales rose 3.6 per cent to $60.2 million in the second quarter compared to the same period last year.
Roots CEO Jim Gabel says in a statement that the company overcame a potential shopping downturn after Canada’s 150th anniversary in 2017 to achieve strong sales results.
Companies in this story: (TSX:ROOT)
The Canadian Press