TORONTO — Roots Corp. beat expectations as it capped a strong 2021 with net profits increasing 47 per cent in the fourth quarter.
The Toronto-based clothing retailer says it earned $18.1 million or 42 cents per diluted share in the quarter, up from $12.3 million or 29 cents per share a year earlier.
Adjusted profits were $20.3 million or 48 cents per share, compared with $16.3 million or 39 cents per share in the fourth quarter of 2020.
Revenues for the three months ended Jan. 29 were $121.3 million, up 22 per cent from $99.4 million in the year-ago period despite its decision to reduce promotions and inventory delays caused by supply chain disruptions.
Analysts on average expected Roots would report 35 cents per share in adjusted earnings on $116 million of revenues, according to financial data firm Refinitiv.
For the full-year, Roots earned $22.8 million on $273.8 million of revenues, up from $13.1 million on $240.5 million in 2020.
"We had a strong end to the year with increased sales, expansion in gross margin and improved operating profitability, reflecting the successful execution of our strategy by the team," stated chief financial officer Mona Kennedy in a news release.
This report by The Canadian Press was first published April 7, 2022.
Companies in this story: (TSX:ROOT)
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