Roots Corporation, a premium outdoor-lifestyle brand, announced Thursday financial results for its fourth quarter and fiscal year ended January 31, 2026.
“Fiscal 2025 was a year of meaningful progress for Roots. We delivered strong sales growth, record gross margins, and improved profitability, while making deliberate investments in the brand’s long-term positioning,” said Meghan Roach, President & CEO of Roots Corporation. “Our results reflect the cumulative impact of a consistent and focused strategy — strengthening our core product offering, elevating the brand, enhancing our omnichannel experience, and driving operational excellence.
“In early March, we also announced that the Board of Directors commenced a strategic review. We are pleased with the level of interest and engagement in this process.”
Fourth Quarter Highlights:
- Sales were $115.5 million, a 4.2% increase compared to $110.8 million in Q4 2024
- DTC sales were $107.0 million, a 5.7% increase compared to $101.2 million in Q4 2024
- DTC comparable sales growth was 7.3%
- Gross margin was 61.8%, up 50bps compared to 61.3% Q4 2024
- DTC gross margin of 62.5%, up 10bps compared to 62.4% in Q4 2024
- Net income (loss) totaled $14.7 million, compared to ($21.7) million in Q4 2024
- Excluding the impacts from the revaluation of cash settled instruments under our share-based compensation plan, net income (loss) would have been $14.6 million, compared to ($21.4) million in Q4 2024
- Adjusted EBITDA was $25.1 million, compared to $25.3 million in Q4 2024
- Excluding the impacts from the revaluation of cash settled instruments under our share-based compensation plan, Adjusted EBITDA would have been $24.9 million, compared to $25.7 million in Q4 2024
- Net debt reduced 42% year-over-year to $4.3 million
Fiscal 2025 Highlights:
- Sales were $277.7 million, a 5.6% increase compared to $262.9 million in F2024
- DTC sales were $239.5 million, a 7.3% increase compared to $223.3 million in F2024
- DTC comparable sales growth was 9.5%
- Gross margin was 61.3%, up 150bps compared to 59.8% in F2024
- DTC gross margin of 63.4%, up 80bps compared to 62.6% in F2024
- Net income (loss) totaled $4.7 million, compared to ($33.4) million in F2024
- Excluding the impacts from the revaluation of cash settled instruments under our share-based compensation plan, net income (loss) would have been $5.2 million, compared to ($33.4) million in F2024
- Adjusted EBITDA amounted to $23.3 million, compared to $21.3 million in F2024
- Excluding the impacts from the revaluation of cash settled instruments under our share-based compensation plan, Adjusted EBITDA would have been $24.1 million, compared to $21.4 million in F2024
- The Company repurchased 1,286,700 common shares for $4.0 million under its normal course issuer 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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