Roots Corporation, the premium outdoor-lifestyle brand, announced Wednesday its Fiscal 2025 second quarter results which ended August 2, 2025, with sales surpassing $50 million in the quarter.
“Roots delivered a strong second quarter with comparable sales up 17.8%, reflecting the strength of our brand and the resonance of our products with consumers,” said Meghan Roach, President and CEO of Roots. “This momentum was supported by innovative collaborations, a compelling product assortment, and our focus on creating meaningful customer experiences. As we continue to strengthen our brand and deepen engagement with our loyal community, we are focused on creating long-term value.”
“While early in the third quarter, we continue to experience positive trends during the back-to-school period.”
Second Quarter Highlights
- Sales were $50.8 million, a 6.3% increase compared to $47.7 million in Q2 2024
- DTC sales were $41.0 million, a 12.7% increase compared to $36.4 million in Q2 2024
- DTC comparable sales growth was 17.8%
- Gross margin was 60.7%, up 430bps compared to 56.4% in Q2 2024
- DTC gross margin of 63.2%, up 150bps compared to 61.7% in Q2 2024
- Net loss totaled ($4.4) million, improving 16.1% from ($5.2) million in Q2 2024
- Excluding the impacts from the revaluation of cash settled instruments under our share-based compensation plan, net loss would have been ($4.0) million, improving 26.8% compared to ($5.5) million in Q2 2024
- Adjusted EBITDA amounted to ($2.1) million, a 32.0% improvement from ($3.1) million in Q2 2024
- Excluding the impacts from the revaluation of cash settled instruments under our share-based compensation plan, Adjusted EBITDA would have been ($1.8) million, improving 47.9% compared to ($3.4) million in Q2 2024
- Net debt reduced 6.5% year-over-year to $38.1 million
- The Company repurchased 491,500 shares for $1.5 million under the normal course issue bid
Established in 1973, Roots is a global lifestyle brand. Starting from a small cabin in northern Canada, Roots has become a global brand with over 100 corporate retail stores in Canada, two stores in the United States, and an eCommerce platform, roots.com. It has more than 100 partner-operated stores in Asia, and we also operate a dedicated Roots-branded storefront on Tmall.com in China.
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Toronto Star headline is: Roots reports $4.4 million net loss in Q2 despite summer marketing campaigns
https://www.thestar.com/business/roots-reports-4-4-million-net-loss-in-q2-despite-summer-marketing-campaigns/article_4fff6077-809b-5dc2-b807-97d9a1aa75d5.html
Why does Retail Insider spin it as “strong results?”
Despite the loss, sales and gross margin were up. As Publisher I’m going to amend the title however, because despite the stronger performance, there was still a net loss.
Thank you, I appreciate you updating the title.