Roots reports second-quarter loss, sales still up
Canadian company Roots Corp. reported last week strong sales for the second quarter of its fiscal year, but still saw a quarterly loss.
Total sales for the quarter, ended August 4, 2018, increased 3.6 percent to $60.2 million.
Sales in the DTC segment including corporate retail store and e-commerce sales were up 3.5 percent to $48.3 million compared to $46.6 million in Q2 2017, largely driven by comparable sales growth of 1.1 percent and the addition of two new corporate retail stores.
Sales in the company’s "partners and other" segment were also up 3.8 percent at $11.9 million.
Still, the Toronto-based company reported a $4.08 million net loss for its second quarter, compared with a net loss of $3.2 million for the same period last year, which resulted in Roots shares hitting an all time low.
Its adjusted net loss was $2.4 million, or $0.06 per share, compared to $1.4 million, or $0.03 per share, in Q2 2017.
President and Chief Executive Officer of Roots, Jim Gabel, explained that “Q2 2017 benefitted from a louder brand voice in Canada and one-time traffic and sales related to Canada 150.”
Roots reaffirmed its previously issued guidance for fiscal 2019. The Canadian company expects sales of $410 million to $450 million, adjusted EBITDA of $61 million to $68 million and adjusted net income of $35 million to $40 million.
The company is currently focused on opening new locations in the U.S. and will open 10 to 14 new American locations during the year. During the quarter, it opened two new U.S. stores and a brand activation centre in Boston.
“Looking to fiscal 2019, we expect our financial results to be within our target range, particularly as we pick-up momentum with our renovations and relocations, and e-commerce continues to be the fastest growing part of our business.”
Copyright © 2021 FashionNetwork.com All rights reserved.