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Roots reports first-quarter loss, sales down 38% compared with a year ago

Drop in sales due to temporary store closures
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A Roots location in Toronto is pictured on Thursday, September 14 , 2017. Roots Corp. reported a $1.8-million loss in its latest quarter as its sales fell 38 per cent compared with a year ago due to the COVID-19 pandemic. THE CANADIAN PRESS/Chris Young

Roots Corp. reported a $1.8-million loss in its latest quarter as its sales fell 38 per cent compared with a year ago due to the COVID-19 pandemic.

Sales in what was the company’s second quarter totalled $38.2 million, down from $61.7 million a year ago.

The clothing retailer says the drop in sales was due to temporary store closures, a phased reopening with reduced operating hours and strict physical distancing measures, partially offset by a gain in e-commerce sales that nearly doubled compared with a year ago.

Roots says its loss amounted to four cents per share for the quarter ended Aug. 1 compared with a loss of $9.7 million or 23 cents per share a year ago.

On an adjusted basis, Roots says it lost four cents per share for the quarter compared with an adjusted loss of 15 cents per share in the same quarter last year.

Analysts on average had expected an adjusted loss of 20 cents per share for the quarter, according to financial markets data firm Refinitiv.

This report by The Canadian Press was first published Sept. 10, 2020.