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.

Source: thestar June 12, 2019 11:48 UTC