Canada · Delayed Price · Currency is CAD Roots Earnings Call Transcripts
Fiscal Year 2026
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Q4 and full year 2025 saw strong sales and margin growth, with net income rebounding and net debt sharply reduced. Strategic investments in marketing, AI, and supply chain, plus a new CCO and ongoing strategic review, position the company for continued growth.
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Q3 2025 saw revenue rise 6.8% to CAD 71.5 million, with strong direct-to-consumer and partner sales, improved gross margins, and higher marketing investments. Net income was stable, and early Q4 trends remain positive amid a dynamic retail environment.
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Q2 2025 saw 6.3% sales growth to $50.8M, with direct-to-consumer comparable sales up 17.8% and gross margin expanding 430 bps. Net loss and adjusted EBITDA loss both improved, while strong brand initiatives and store investments supported momentum.
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Q1 2025 saw 6.7% sales growth to CAD 40 million, led by strong DTC performance and gross margin expansion. Adjusted EBITDA loss improved 16.8% (excluding DSU revaluation), and net debt declined 6.7%. DTC momentum continued into Q2, with no signs of consumer weakness.
Fiscal Year 2025
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The meeting covered financial statements, board elections, auditor reappointment, and an amendment to the Omnibus Equity Incentive Plan. All director nominees were elected with overwhelming support, and the proposed plan amendment was approved.
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Q4 2024 saw sales rise 2.4% (4.5% excluding the extra week), with DTC comparable sales up 7.5% and gross margin expanding 270 bps. Net debt hit a record low, and a share repurchase program was announced, while early Q1 2025 momentum remains strong.
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Q3 2024 saw 5.3% sales growth, margin expansion, and a 29% rise in Adjusted EBITDA, driven by strong product performance and disciplined operations. Early Q4 trends remain positive, with improved inventory and continued brand momentum.
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Q2 2024 sales declined 3.4% year-over-year, but product margins improved and net debt fell 20%. Activewear and digital channels showed strong growth, while inventory and cost management initiatives supported margin gains despite FX and freight headwinds.
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Q1 2024 saw a sales decline driven by lower DTC sales and inventory shortages, but gross margin improved and net debt was reduced. Strategic initiatives in omnichannel, sustainability, and AI are expected to support growth, with replenishment of key products planned for Q3.
Fiscal Year 2024
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The meeting confirmed quorum, reviewed the agenda, and conducted voting electronically. All nine director nominees were re-elected with overwhelming support, and KPMG LLP was reappointed as auditor. No questions were raised during the formal business.