Roots cuts full-year sales guidance as business performs ‘below expectations’

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Roots cuts full-year sales guidance as business performs ‘below expectations’ GlobeBusiness

This translation has been automatically generated and has not been verified for accuracy.Canadian retailer Roots Ltd. said sales for this fiscal year will fall below previous expectations, as it faces various pressures across the business.

The company also recently made the transition to a new distribution centre in order to begin fulfilling e-commerce orders itself and to manage its digital and store inventory together; but “inefficiencies” in that new distribution centre affected sales and drove up costs, a problem the company is now trying to fix.

Roots reported net income of $1.97-million, or five cents per share in the three months ended Nov. 2, down from $2.8 million or seven cents per share in the same period last year. However, early inefficiencies in distribution meant that Roots had some trouble getting the right product to stores in a timely manner. The retailer is now working on improving its efficiency.

 

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globebusiness The material is not the same, it’s much cheaper and does not last long after a washing cycle.

globebusiness Roots' customer service is the worst so no wonder.

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