The fashion retailer, which operates under the Garage and Dynamite banners, says its profit amounted to 56 cents per diluted share for the quarter ended Aug. 2, up from 38 cents per diluted share in the same quarter last year. On an adjusted basis, Groupe Dynamite says it earned 57 cents per diluted share, up from an adjusted profit of 40 cents per diluted share a year earlier.
Revenue for the 13-week period totalled $326.4 million, up from $239.1 million a year ago, while its comparable store sales rose 28.6%.
In its outlook, Groupe Dynamite says it now expects comparable store sales growth between 17.0% and 19.0% for its full year, up from earlier expectations for between 7.5 and 9.0%. It also raised its expectations for its adjusted earnings before interest, taxes, depreciation and amortization margin to between 32.0% and 33.5%, up from earlier guidance for between 30.3% and 32.3%.
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Roots reports $4.4 million net loss in Q2 despite summer marketing campaigns
Roots (TSX:ROOT)
Numbers for the second quarter (all figures in USD):
Loss: $4.4 million (down from $5.2 million loss a year earlier)
Revenue: $50.8 million (up from $47.7 million a year earlier)
Roots Corp. offered some buzzy marketing campaigns and brand collaborations over the summer in hopes of driving traffic to the retailer but still wound up reporting a loss during the period.
The Toronto-based apparel maker said Wednesday its second-quarter net loss narrowed to $4.4 million compared with a $5.2-million loss a year earlier. The result for the period ended Aug. 2 amounted to a loss of 11 cents per share for the quarter compared with a loss of 13 cents per share a year prior. Meanwhile, second-quarter sales reached $50.8 million, up from $47.7 million.
Roots CEO Meghan Roach told financial analysts on a conference call Wednesday that it is typical for the company to generate about 30% of its sales in the first half of the year, often leaving it with a loss as it heads into the fall and winter.
However, the second-quarter results this year came in spite of tense trade relations between Canada and the U.S., which have made shoppers more cautious. “Despite the dynamic global operating environment, Roots continues to build positive momentum as we head into the second half of the year,” Roots chief financial officer Leon Wu said on the same call as Roach.
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Much of that momentum has come from direct-to-consumer sales, which include corporate retail store and e-commerce sales. In the second quarter, direct-to-consumer sales totalled $41 million, up 12.7% from the year before. Direct-to-consumer comparable sales growth was 17.8%.
Wu saw the increase as a reflection of customers responding well to the company’s spring and summer collections as well as its recent marketing campaigns. The campaigns helped Roots increase engagement and made the brand feel more accessible, Roach said. Included in the campaigns were instances where Roots transformed a parking lot into nature-inspired spaces for golf and tennis.
The company also hosted a pop-up in Toronto to promote a summer capsule collection with ginger ale maker Canada Dry. The collection included hoodies and graphic tees featuring Canada Dry’s logo and vintage advertisements.
“Together, these collaborations amplified brand heat, reinforced our heritage positioning, and extended our reach for authentic Canadian cultural moments,” Roach said. “We will continue to use selective partnerships and experiences to build that brand perception and support full-price sell through into fall.”
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Transat A.T. reports $399.8-million Q3 profit, revenue up from a year ago
Transat A.T. Inc. (TSX:TRZ)
Numbers for the third quarter (all figures in USD):
Profit: $399.8 million (up from a loss of $39.9 million a year earlier)
Revenue: $766.3 million (up from $736.2 million a year earlier)
Transat A.T. Inc. reported a net income of $399.8 million in its latest quarter compared with a loss of $39.9 million in the same quarter last year, as its revenue rose 4.1%.
The parent company of Air Transat says the profit amounted to $9.97 per share for the quarter ended July 31, compared with a loss of $1.03 per share a year earlier.
On an adjusted basis, Transat says it had a loss of 28 cents per share in its latest quarter, compared with an adjusted loss of 93 cents per share in the same quarter last year.
