TORONTO — Retail company Roots says its third-quarter earnings dipped from last year to come in below its own target range as it faces a number of challenges.
The clothing brand says it had a net income of $1.97 million, or five cents per share in the quarter ending Nov. 2, down from $2.8 million or seven cents per share for the same quarter last year.
Analysts had expected earnings of $4.3 million, or eight cents per share, according to financial markets data firm Refinitiv.
Company CEO Jim Gabel says downward pressure on earnings has come from inefficiencies, U.S. stores performing “well-below” expectations, and macroeconomic headwinds at its Asia business.
Roots says that given its operational headwinds, and the “compressed holiday selling season” due to a later U.S. Thanksgiving, it now expects sales and net income for the fourth quarter will also be below its previous guidance.
The company also announced the immediate resignation of the company’s chief merchant, Nancy Lepler, for personal reasons.
This report by The Canadian Press was first published Dec. 6, 2019.
Companies in this story: (TSX:ROOT)
The Canadian Press