Roots operates more than 100 corporate retail stores in Canada. Credit: Roots Corp./commons.wikipedia.org.

Canadian clothing retailer Roots has reported total sales of C$63.53m ($46.72m) in the third quarter (Q3) of the fiscal year 2023 (FY23), down by 9% from C$69.78m ($51.32m) in the same period a year previously.

Direct-to-customers sales, which include corporate retail store and e-commerce sales, dropped by 8.2% to C$52.20m in Q3 FY23, impacted by lower off-price sales.

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The retailer’s “partners and others” sales fell by 12.3% to C$11.33 in Q3 FY23 from C$12.92m in the same period of the previous year.

During the quarter ended 28 October 2023, its net income was C$0.51m, a decrease of 77.2% from C$2.20m in Q3 FY22.

The retailer’s net income per share dropped to C$0.01 in Q3 FY23, from C$0.05 in Q3 a year previously.

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Its adjusted earnings before interest, taxes, depreciation, and amortisation for the latest quarter dropped to C$5.52m from C$7.27m in Q3 FY22.

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The quarter’s selling, general and administrative expenses stood at C$33.78m, down by 0.1% from C$33.83m in Q3 FY22.

The company’s gross profit declined by 5.9% to C$37.11m ($27.3m) in Q3 2023 against C$39.42m in the same quarter of the previous year.

Roots also saw its net debt reduce by 10% YoY to C$52.9m.

Roots president and CEO Meghan Roach said: “Our full-priced sales have shown resilience, underscoring the appeal of our latest products and the success of our intensified marketing strategies in the third quarter.

“However, the prevailing economic headwinds have altered consumer spending patterns and in the third quarter we maintained a promotional discipline which influenced our off-price sales dynamics.”

Roots operates a network of more than 100 corporate stores in Canada, two stores in the US, and more than 100 partner-operated stores in Asia.