Roots, a premium outdoor-lifestyle brand, announced Wednesday financial results for its third quarter ended November 1, 2025.
“Roots delivered strong third-quarter results, with growth driven by consumers’ positive response to our products, enhanced marketing efforts, and improved in-store execution,” said Meghan Roach, President and Chief Executive Officer of Roots Corporation.
“Even in a dynamic retail environment, our heritage, quality, and focus on comfort continued to differentiate the brand and drive engagement across our omnichannel platform. We remain disciplined in execution and committed to strengthening the foundations of the brand to support long-term value creation.
“While early in the fourth quarter, we continue to experience positive trends.”
Third Quarter Highlights
- Sales were $71.5 million, a 6.8% increase compared to $66.9 million in Q3 2024
- DTC sales were $56.8 million, a 4.8% increase compared to $54.2 million in Q3 2024
- DTC comparable sales growth was 6.3%
- Gross margin was 60.8%, up 80bps compared to 60.0% Q3 2024
- DTC gross margin of 65.4%, up 140bps compared to 64.0% in Q3 2024
- Net income totaled $2.3 million, decreasing 4.5% from $2.4 million in Q3 2024
- Excluding the impacts from the revaluation of cash settled instruments under our share-based compensation plan, net income would have been $2.4 million, improving 1.5% compared to $2.3 million in Q3 2024
- Adjusted EBITDA amounted to $7.5 million, a 5.3% improvement from $7.1 million in Q3 2024
- Excluding the impacts from the revaluation of cash settled instruments under our share-based compensation plan, Adjusted EBITDA would have been $7.6 million, improving 7.3% compared to $7.0 million in Q3 2024
- Net debt reduced 5.9% year-over-year to $44.1 million
- The Company repurchased 415,200 common shares for $1.3 million under its 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 it also operates a dedicated Roots-branded storefront on Tmall.com in China.
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