Roots reports $7.8-million loss on supply-chain issues, store closings

Roots Corp. reported a loss of $7.8 million in its latest quarter as the COVID-19 pandemic disrupted its supply chain in Asia and forced the temporary closing of its stores in North America.

The clothing retailer says its loss amounted to 18 cents per share for the quarter ended May 2 compared with a loss of $9.8 million, or 23 cents per share, a year earlier.

Sales in what was the company’s first quarter totalled $29.9 million, down from $54.4 million.

On an adjusted basis, Roots says it lost $9.1 million, or 22 cents per share, in the quarter compared with a loss of $7.2 million, or 17 cents per share, a year ago.

Roots named Meghan Roach as its new chief executive last month.

“Given the unprecedented business environment created by COVID-19 and the temporary closure of our North American store fleet, we experienced a meaningful decline in our first quarter sales,” Roach said in a statement Friday.