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A pedestrian passes a Roots store in downtown Montreal on May 19, 2020.

Christinne Muschi/Christinne Muschi/The Globe and

Roots Corp. reported a handsome profit in its last quarter as strong online sales and demand for its upscale comfort wear offset the impact of pandemic-related store closings and a dip in overall sales.

The outdoor lifestyle retailer said Thursday it earned a profit of $12.3-million in its fourth quarter even as sales in what is traditionally the strongest period for the company slipped to $99.4-million from $127.5-million in the same quarter last year.

The company, known for its premium branded sweats and leather goods, recorded a 60-per-cent increase in e-commerce sales in the quarter.

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“We’re seeing some good shifts in the marketplace from a casualization perspective that plays into our strengths,” Roots chief executive Meghan Roach said during a conference call.

“We are a business that has offered these things for quite a long period of time and our proprietary products have made us successful for that reason.”

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.”

“It’s performed well for us in the marketplace,” she said. “Consumers are really liking what we’re doing, so that’s very positive.”

Despite the company’s increasing move online, Ms. Roach said the Roots brick-and-mortar stores continue to be a key focus for the retailer.

“We’ve been spending a lot of time this past year really learning more about our customers, their lives, the way they live, and what they want from us from a product perspective,” she said, noting that 60 per cent of Roots customers say they still want to come into a store to try things on.

Meanwhile, the retailer said its profit amounted to 29 cents a share for the three-month period ended Jan. 30.

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The result compared with a loss of $44.6-million or $1.06 a share one year earlier when the company took a large goodwill charge.

On an adjusted basis, Roots said it earned $16.3-million or 39 cents a share, up from an adjusted profit of $13.3-million or 31 cents a share one year earlier.

Roots said the drop in sales in the fourth quarter was due to temporary store closings due to the pandemic, partially offset by strong online sales.

“Despite the fact that most of our retail locations were closed during what is typically our busiest and most productive time of the year, we were able to deliver profitability for the fourth quarter that was in line with the previous year when all of our stores were open,” Ms. Roach said in a statement.

“While we continue to face government mandated temporary store closures in Q1 2021, we are confident in our capabilities to manage the business through these challenging times.”

Roots shares gained 21 cents or 6.6 per cent at $3.37 in morning trading on the Toronto Stock Exchange.

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