Roots Corp. ROOT-T reported a first-quarter loss of $8-million compared with a loss of $5.3-million a year earlier, as its sales edged down on lower demand for its popular sweatpants.
Roots chief executive Meghan Roach says the results aligned with the company’s internal projections and reflected a challenging economic environment.
The retailer says the loss amounted to 19 cents per diluted share for the quarter ended April 30 compared with a loss of 13 cents per diluted share in the same quarter last year.
Sales in the quarter totalled $41.5-million, down from $43.1-million a year ago.
Roots says the decline in sales came as its direct-to-consumer sales amounted to $35.4-million, down from $37.4-million in the same quarter last year.
Partner and other sales, which includes wholesale Roots branded products, licensing to select manufacturing partners and the sale of certain custom products, totalled $6.1-million, up from $5.7-million a year ago.
Roach said the company saw strength in sales of its dresses, skirts and activewear.
“While softness in demand for traditional fleece bottoms resulted in an overall year-over-year sales decline, our success in broadening our product range underscores the capacity of the brand to diversify and attract new customers,” Roach said in statement.