A Roots store in Toronto.Chris Young/The Globe and Mail
Retailer Roots Corp. says sales were up 13 per cent in its latest quarter compared with a year ago as it released its first quarterly report since completing its initial public offering.
Sales totalled $89.7-million for what was the company's third quarter, up from $79.4-million in the same quarter last year.
The increase was driven by comparable sales growth of 10.1 per cent and the opening of four net new corporate stores compared with a year ago.
Roots shares were up about 5 per cent at the start of trading in Toronto.
The retailer earned $5-million or 12 cents per share for the 13 weeks ended Oct. 28 compared with a profit of $5.9-million or 14 cents per share in the same period last year.
The drop came as selling, general and administrative expenses increased to $40.8-million compared with $32.3-million a year ago, boosted by costs to support higher sales, investments in the business and costs related to the initial public offering.
On an adjusted basis, Roots says it earned $9.5-million or 23 cents per share, up from $7.6-million or 18 cents per share a year ago. Analysts had expected a profit of 17 cents per share, according to Thomson Reuters.