Roots (TSX:ROOT) is a Toronto-based company with a portfolio of apparel, leather goods, accessories, and unisex footwear offerings. Roots stock was up 1.55% in early afternoon trading on April 5. Shares have jumped 43% in 2019 so far. However, the stock is still down 55% year over year.
The company released its fourth-quarter results on April 3. Sales rose to $130.8 million in Q4 2018 compared to $130 million in the prior year. It represented a slight bump, but it was still a positive beat considering slumping retail numbers in North America.
Profit hit $18.3 million or $0.43 per share compared to $20.9 million or $0.50 per share in the prior year. This represented a miss compared to analyst estimates of $0.50 per share profit in the final quarter of 2018.
For the full-year Roots posted a profit of $11.4 million or $0.27 per diluted share compared to a profit of $17.5 million or $0.41 per share in 2017. Like other major retailers in its consumer bracket, Roots has struggled with slumping sales and high costs due to its large brick-and-mortar footprint.
Roots released its outlook for fiscal 2019 and projected sales between $358 million and $375 million. It forecasts adjusted net income between $20 million and $24 million.
Roots is still trading at the low end of its 52-week range. The stock had an RSI of 61 as of this writing, which puts it in neutral territory as we come to the end of the first trading week in April.
