Roots Corp. (TSX:ROOT) reported a profit of $12.3 million in its fourth quarter as strong online sales offset the impact of pandemic-related store closures.
The profit came even as Roots overall sales dropped in the final quarter of 2020. The company said sales slipped to $99.4 million from $127.5 million in the fourth quarter of 2019. However, Roots, known for its premium branded sweats, recorded a 60% increase in e-commerce sales in the quarter.
The company recently launched a retro collection, which features the brand's athletic logo from the late 1980s and is marketed with the tagline "classic comfort makes a comeback."
The retailer said its profit amounted to 29 cents per share for the three-month period ended January 30. The latest result compared with a loss of $44.6 million or $1.06 per share a year earlier when the company took a large goodwill charge.
On an adjusted basis, Roots said it earned $16.3 million or 39 cents per share, up from an adjusted profit of $13.3 million or 31 cents per share a year earlier. Roots said the drop in sales in the fourth quarter was due to temporary store closures due to the pandemic.
