Roots closing seven U.S. stores, reports $44.6M fourth-quarter loss

Roots closing seven U.S. stores, reports $44.6M fourth-quarter loss
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TORONTO — Roots Corp. is permanently closing seven of its U.S. stores and says it will focus predominately on e-commerce in the U.S.

It says it is closing its stores in Boston, Washington and Chicago, as well as its pop-up location in Woodbury Common, N.Y.

Roots says it believes online sales in the near term is the best approach to U.S. market, but it will keep its two long-standing stores in Michigan and Utah, where they have well-established customer bases.

The announcement came as the retailer posted a loss of $44.6 million or $1.06 per share for the quarter ended Feb. 1 compared with a profit of $18.3 million or 43 cents per share in the same quarter a year earlier.

Sales totalled $127.5 million, down from $130.8 million in the same quarter a year ago.

On an adjusted basis, Roots says it earned $13.3 million or 31 cents per share, compared with $22.3 million or 53 per share a year earlier.

This report by The Canadian Press was first published April 29, 2020.

Companies in this story: (TSX:ROOT)

The Canadian Press

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