Clothing retailer Roots reports third-quarter profit up from year ago, sales down

TORONTO – Clothing retailer Roots reported its third-quarter profit rose compared with a year ago as the company cut costs.

Roots says it earned $10.3 million or 24 cents per diluted share for the quarter ended Oct. 31 compared with a profit of nearly $2 million or five cents per diluted share a year earlier.

Sales totalled $72.9 million, down from nearly $86.4 million in the same quarter last year.

The company says the drop in sales was predominantly due to a decrease in store traffic because of the pandemic, partially offset by a 40 per cent increase in online sales.

On an adjusted basis, Roots says it earned 27 cents per share, up from 10 cents per share in the third quarter of 2019.

Analysts on average had expected an adjusted profit of seven cents per share and $73.2 million in sales, according to financial data firm Refinitiv.

This report by The Canadian Press was first published Dec. 9, 2020.

Companies in this story: (TSX:ROOT)