Roots Corp. reports $8M Q1 loss, sales drop from a year ago
Roots chief executive Meghan Roach says the results aligned with the company's internal projections and reflected a challenging economic environment.
Roots Corp. reported a first-quarter loss of $8 million compared with a loss of $5.3 million a year earlier, as its sales edged down on lower demand for its popular sweatpants.
Roots chief executive Meghan Roach says the results aligned with the company’s internal projections and reflected a challenging economic environment.
The retailer says the loss amounted to 19 cents per diluted share for the quarter ended April 30 compared with a loss of 13 cents per diluted share in the same quarter last year.
Sales in the quarter totalled $41.5 million, down from $43.1 million a year ago.
Roots says the decline in sales came as its direct-to-consumer sales amounted to $35.4 million, down from $37.4 million in the same quarter last year.
Partner and other sales, which includes wholesale Roots branded products, licensing to select manufacturing partners and the sale of certain custom products, totalled $6.1 million, up from $5.7 million a year ago.
Roach noted the company saw strength in sales of its dresses, skirts and activewear.
“While softness in demand for traditional fleece bottoms resulted in an overall year-over-year sales decline, our success in broadening our product range underscores the capacity of the brand to diversify and attract new customers,” Roach said in statement.
