Roots reports Q1 loss due to pandemic-related supply chain issues, store closures

Roots reports Q1 loss due to pandemic-related supply chain issues, store closures
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TORONTO — Roots Corp. reported a loss of $7.8 million in its latest quarter as the COVID-19 pandemic disrupted its supply chain in Asia and forced the temporary closure of its stores in North America.

The clothing retailer says its loss amounted to 18 cents per share for the quarter ended May 2 compared with a loss of $9.8 million or 23 cents per share a year earlier.

Sales in what was the company’s first quarter totalled $29.9 million, down from $54.4 million.

On an adjusted basis, Roots says it lost $9.1 million or 22 cents per share in the quarter compared with a loss of $7.2 million or 17 cents per share a year ago.

Analysts on average had expected a loss of 23 cents per share, according to financial markets data firm Refinitiv.

Roots named Meghan Roach as its new chief executive last month.

“Given the unprecedented business environment created by COVID-19 and the temporary closure of our North American store fleet, we experienced a meaningful decline in our first quarter sales,” Roach said in a statement Friday.

“However, we are continuing to take the necessary steps to mitigate the impacts of the pandemic on the company, including increasing our focus on generating revenue from other areas of our business.”

This report by The Canadian Press was first published June 12, 2020.

Companies in this story: (TSX:ROOT)

 

The Canadian Press

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