Root Corp falls on lower Q2 same-store sales, 2019 sales forecast

Roots

11/09/2019 15:37

** Shares of the Canadian apparel firm  ROOT.TO  down 13.14%
at C$2.38
    ** Co's Q2 comparable sales decline 2.9%, primarily due to a
year-over-year decrease in store traffic  urn:newsml:reuters.com:*:nCNWs7thka
    ** Q2 expenses rose 7.4% to C$40 million
    ** Qrtrly adj. net loss of C$0.15/shr wider than C$0.06/shr
in Q2 2018
    ** Co ests. softness in Asia business, ongoing incremental
costs from its new distribution centre to have a negative impact
on full-year adj. EBITDA, expected to be between C$5 mln and C$6
mln
    ** Forecasts 2019 sales to be at the low end, or fall
slightly below co's previously announced target range of C$358
to C$375 million
    ** Stock down 24% this year

 (Reporting by Arundhati Sarkar in Bengaluru)
 ((Arundhati.Sarkar@thomsonreuters.com))