(Toronto) Roots posted a first-quarter loss of 5.3 million on Tuesday, which compares with a loss of 4.9 million for the same period last year, as its sales rose 15%.
Posted at 10:46 a.m.
Updated at 2:00 p.m.
The clothing retailer said its loss per share was 13 cents for the quarter ended April 30, compared with a loss of 12 cents a year earlier.
Sales totaled 43.1 million in the most recent quarter, compared to 37.3 million in the first quarter of last year.
This growth was driven by the full reopening of all Roots stores during the quarter, compared to approximately 70% a year ago, due to partial lockdowns due to the COVID-19 pandemic.
Roots has also reduced the scope of its promotions — the sales and discounts that typically erode margins in the retail industry.
“We haven’t really seen any significant pushback from consumers since we cut promotions,” Roots CFO Mona Kennedy explained.
The company has seen its input costs rise. Cotton prices have been volatile and fuel and transport prices have increased.
“We implemented strategic price increases in the first half of the year, and we could do it again to offset (the cost increases),” Ms.me Kennedy.
Direct-to-consumer sales reached 37.4 million, compared to 31.4 million last year, while partner and other sales totaled 5.7 million, down from 5. .9 million from last year.
Roots attributed the decline to the company’s reduced Asian business in Taiwan — which had been stronger last year due to a change in the timing of wholesale orders — which was partially offset by growth in sales of Roots-branded custom products for business customers and those made through TMall.com in China.