Roots' CEO says the consumer is becoming more price-sensitive
Roots Corp. is reporting its third-quarter profit and revenue fell compared with a year ago as it says it faced economic headwinds.
The clothing retailer says it earned $519,000 or a penny per share for the quarter ended Oct. 28, down from a profit of $2.2 million or five cents per share in the same quarter last year.
Sales totalled $63.5 million for the quarter, down from $69.8 million a year earlier.
The company says the drop came as direct-to-consumer sales, which includes its corporate retail stores and e-commerce sales, totalled $52.2 million, down from $56.9 million a year ago.
Roots says the drop was driven by lower discounted sales and the tightening of consumer discretionary spending, while full-price sales rose three per cent compared with a year ago.
Partner and other sales, which includes wholesale branded products, licensing to manufacturing partners and certain custom products, totalled $11.3 million, down from $12.9 million in the same quarter last year.
This report by The Canadian Press was first published Dec. 6, 2023.