Roots reports $12.3M fourth-quarter profit even as pandemic hurt sales

TORONTO — Roots Corp. earned a profit of $12.3 million in its fourth quarter even as its sales fell due to the pandemic.

The retailer says its profit amounted to 29 cents per share for the three-month period ended Jan. 30.

The result compared with a loss of $44.6 million or $1.06 per share a year earlier when the company took a large goodwill charge.

On an adjusted basis, Roots says it earned $16.3 million or 39 cents per share, up from an adjusted profit of $13.3 million or 31 cents per share a year earlier.

Sales in what is traditionally the strongest quarter for the company totalled $99.4 million, down from $127.5 million.

Roots says the drop was due to temporary store closures due to the pandemic, partially offset by strong online sales.

“Despite the fact that most of our retail locations were closed during what is typically our busiest and most productive time of the year, we were able to deliver profitability for the fourth quarter that was in line with the previous year when all of our stores were open,” Roots chief executive Meghan Roach said in a statement. 

“While we continue to face government mandated temporary store closures in Q1 2021, we are confident in our capabilities to manage the business through these challenging times.”

This report by The Canadian Press was first published April 8, 2021.

Companies in this story: (TSX:ROOT)

The Canadian Press