TORONTO — The Roots clothing company’s first quarter loss was 75 per cent bigger than last year as inventory costs associated with a new distribution centre offset gains from higher sales.
Roots Corp. had a $9.8 million net loss or 23 cents per basic share for the quarter ended May 4, which compared with last year’s first quarter loss of $5.6 million or 13 cents per share.
Its adjusted net loss was equal to 17 cents per share, compared with 11 cents per share a year earlier.
Sales for the Toronto-based clothing retailer were up 6.5 per cent year-over-year, rising to $54.4 million from $51 million, while comparable-store sales were up 1.5 per cent.
However, gross margin fell by 4.5 percentage points to 52.5 per cent as Roots worked to move to a new integrated distribution centre. which it expects to come online during the current quarter.
The company says it remains on track to achieve its fiscal 2019 financial targets, which include sales of between $358 million and $375 million and adjusted net income of between $20 million and $24 million.
Companies in this story: (TSX:ROOT)
The Canadian Press