Roots Corp. (ROOT) capped a strong 2021 with net profits increasing 47% in the fourth quarter, fueled by strong international sales.
The Toronto-based clothing retailer said it earned $18.1 million or $0.42 per share in the fourth quarter, up from $12.3 million or $0.29 per share a year earlier.
Revenues for the three months ended January 29 totalled $121.3 million, up 22% from $99.4 million a year ago despite its decision to reduce promotions and inventory delays caused by global supply chain disruptions.
Analysts, on average, had expected Roots to report $0.35 cents per share in earnings on $116 million of revenues, according to financial data firm Refinitiv.
For the full-year, Roots earned $22.8 million on $273.8 million of revenues, up from $13.1 million on $240.5 million in 2020.
In a news release, Roots said it had a strong end to the year with increased sales overseas, expansion in its gross margins, and improved operating profitability.
Roots stock has gained 33% over the past six months, including a 19% increase this year, to now trade at $3.74 on the Toronto Stock Exchange
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