Roots Corp. (ROOT) said that its sales during this year’s third quarter totalled $69.8 million, down 8.5% from $76.3 million a year earlier.
The iconic Canadian clothing retailer reported that its net income for the third quarter dropped 80%, falling to $0.05 a share from $0.25 per share a year earlier.
Analysts had expected a profit of $0.19 per share from the company and $8.1 million in net income, according to Refinitiv data.
The company’s chief executive officer (CEO), Meghan Roach, blamed the poor financial results on increased discounting and a focus on lifestyle products instead of casual wear as people return to offices and professional events.
Roots’ stock fell 11% on news of the poor Q3 earnings. The company’s share price is down 18% on the year and trading at $2.58, putting it in penny stock territory.
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