The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Stephen MacLeod - BMO Capital Markets Equity Research - Analyst
: I just wanted to follow-up. I just want the sales number. Can you talk a little bit about how sales sort of progressed through the quarter and how
in-store sales are performing now that the stores have been reopened?
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SEPTEMBER 10, 2020 / 12:00PM, ROOT.TO - Q2 2020 Roots Corp Earnings Call
Question: Stephen MacLeod - BMO Capital Markets Equity Research - Analyst
: Okay. That's helpful. And then can you talk a little bit about in terms of the cost. So SG&A was down quite substantially year-over-year. And Mona,
you addressed a little bit of this in your prepared remarks, but how much -- are you able to quantify how much of that $18.6 million decline is
recurring versus onetime in nature? Maybe not onetime, but more related to COVID-19, I guess.
Question: Stephen MacLeod - BMO Capital Markets Equity Research - Analyst
: Okay. That's helpful. Of that $11.8 million, which was the large year-over-year decline bucket, are you able to quantify the breakdown between
lower wages, labor, I guess, rent and overall corporate costs? Like how much of that larger bucket is -- how that breaks down between some
recurring and some sort of contained to this period?
Question: Stephen MacLeod - BMO Capital Markets Equity Research - Analyst
: Okay. No, that's fine. And then maybe just finally, in terms of the inventory. You talked a little bit about -- I just want to make sure I understood this
correctly, but it sounded as though a lot of those perennial favorites will stay in the inventory. Is that a shift? I don't understand correctly. Is that a
shift in how you're managing inventory currently versus how you've managed it previously?
Question: Sabahat Khan - RBC Capital Markets, Research Division - Analyst
: Just want to get some thoughts, maybe high-level thoughts on how you're thinking about e-commerce and your store footprint. And you indicated
that obviously, there's a big spike over the recent months with e-commerce, are you maybe thinking about rejigging some of your stores to be
maybe even more sort of e-commerce friendly, maybe shrinking some footprint, if necessary? How are you thinking about that sort of medium
and long term?
Question: Sabahat Khan - RBC Capital Markets, Research Division - Analyst
: Great. And then maybe as we look sort of to the back half of the year, and you made some commentary on your inventory position earlier on. And
do you still expect to kind of benefit from some of that positive mix shift towards some of these higher-margin sweat type products, given that
this work-from-home situation continues and maybe kids stay at home to some extent? How are you thinking about maybe the mix shift for the
back half of the year?
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