One of Burnaby’s biggest fashion stores has officially shaken off the COVID-19 pandemic blues to see some surging numbers.
Roots Corp. operates a large store in Metropolis at Metrotown mall and it has beat expectations as it capped a strong 2021 with net profits increasing 47 per cent in the fourth quarter.
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.
"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 is good news for Burnaby retailers after a long string of bad news that included the closure of such retailers as Frank & Oak and Microsoft in Metropolis.
The 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.
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.
- With additional reporting by the Canadian Press
