Roots Corp: Plummets on weak Q3, profit forecast cut

Roots

05/12/2018 15:08

** Canadian retailer's shares  ROOT.TO  plunge 25 pct to
C$3.40
    ** Q3 total sales fall 3 pct to C$87 mln ($65.49 mln) from a
year earlier; cites negative traffic trends due to weaker brand
voice, unseasonably warm fall weather  urn:newsml:reuters.com:*:nCNWKr8Yxa
    ** Q3 adj EPS more than halves to 11 Canadian cents from 23
Canadian cents 
    ** Says to operate with a "more conservative pace of
expansion until it sees meaningful consumer response" to its new
marketing initiatives; prunes 2019 U.S. store openings to 5-6 vs
10-14 outlined earlier
    ** Cuts 2019 sales range to C$358 mln-C$375 mln, from C$410
mln to C$450 mln previously stated 
    ** Pares adj net income target to between C$20 mln-C$24 mln,
from C$35 mln-C$40 mln
    ** Shares down 60 pct so far this year to Tues close

($1 = 1.3284 Canadian dollars)

 (Reporting By Aparajita Saxena in Bengaluru)
 ((Aparajita.Saxena@thomsonreuters.com; within U.S. +1 646 223
8780, outside U.S. +91 806 749 8901; Reuters Messaging:
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