Fashion
Canadian brand Roots’ Q2 FY25 sales rise 6.3%, DTC growth hits 12.7%
The results reflect strong customer response towards the company’s ongoing brand investments and curated product offerings, as well as improvements to enhance the omnichannel customer experience, Roots Corporation said in a press release.
Roots Corporation has posted sales of $50.8 million in Q2 FY25, up 6.3 per cent, with DTC sales rising 12.7 per cent on strong 17.8 per cent comparable growth.
The gross margin improved to 60.7 per cent, while net loss narrowed to $4.4 million.
Adjusted EBITDA loss reduced, free cash flow improved, and net debt fell.
Inventory rose to support seasonal demand. H1 sales reached $90.7 million.
Partners & Other (P&O) sales, which include wholesale, licensing, and custom products, fell 14.2 per cent to $9.7 million, mainly due to reduced wholesale orders from Roots’ international partner as it optimised inventory levels.
The gross profit of the company increased 14.5 per cent YoY to $30.8 million, while gross margin expanded 430 bps to 60.7 per cent, aided by a higher-margin sales mix. DTC gross margin rose to 63.2 per cent, up 150 basis points (bps) from last year, benefitting from improved product costing and lower discounting, partially offset by foreign exchange headwinds.
The selling, general and administrative (SG&A) expenses rose 9.1 per cent to $34.7 million, reflecting higher variable costs from stronger sales, increased marketing spend, and personnel expenses. Adjusted for share-based compensation revaluation, SG&A expenses were up 7 per cent.
Roots reported a net loss of $4.4 million, or $0.11 per share, improving from a loss of $5.2 million, or $0.13 per share, in the prior-year quarter. Excluding the impact of cash-settled share-based compensation, the net loss narrowed to $4 million, an improvement of nearly 27 per cent YoY.
The adjusted EBITDA improved 32 per cent to negative $2.1 million, from a loss of $3.1 million in Q2 FY24. On an adjusted basis excluding share-based impacts, EBITDA stood at a loss of $1.8 million, a 47.9 per cent improvement from last fiscal.
Free cash flow improved to $6.9 million, up 22.9 per cent from $9 million in the same quarter of FY24. Net debt was reduced 6.5 per cent YoY to $38.1 million, reflecting stronger financial discipline.
The company also repurchased 491,500 shares for $1.5 million under its normal course issuer bid during the quarter.
Inventory at the end of Q2 stood at $49.9 million, reflecting a healthy alignment with growth in direct-to-consumer sales. The increase ensures stronger stock positions for year-round core collections and supports upcoming seasonal launches for autumn and the holiday period.
Net debt closed the quarter at $38.1 million, with a leverage ratio of 1.6x on trailing twelve-month Adjusted EBITDA. The company also reported $40.9 million outstanding under its credit facilities and total liquidity of $41.3 million, including borrowing capacity under its revolving facility.
“Roots delivered a strong second quarter with comparable sales up 17.8 percent, reflecting the strength of our brand and the resonance of our products with consumers,” said Meghan Roach, president and chief executive officer (CEO) of Roots Corporation. “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.”
For the first half (H1) of fiscal 2025 (FY25), sales grew 6.5 per cent to $90.7 million, with DTC sales went up 11.6 per cent at $75.7 million and comparable sales growth of 16.1 per cent. P&O sales declined 13.2 per cent to $15.1 million.
The gross profit in H1 rose to $55.4 million, or 61 per cent of sales. The net loss for H1 improved to $12.3 million from $14.1 million in Q2 FY24.
Roots expects momentum to carry into the second half (H2) of fiscal 2025, driven by strong brand positioning, improved customer engagement, and ongoing operational efficiency. The company will continue to balance investments in growth with strategies to reduce debt and enhance long-term shareholder value.
Fibre2Fashion News Desk (SG)
“Mr. Jones brings extensive experience in consumer insights, brand building and organizational transformation and has a proven record of creating significant stakeholder value,” said Bob Eckert, chair of the board of Levi Strauss & Co. “He has repeatedly strengthened brands and organizations across industries, and his leadership will play a critical role as we evolve LS&Co. into a best-in-class, DTC-first retailer.”
Levi Strauss & Co has appointed H&R Block president and CEO Jeffrey J Jones II to its board, effective January 21, 2026.
He will serve on the nominating, governance and corporate citizenship committee and the compensation and human capital committee.
Jones brings over 30 years of experience in consumer, retail and technology leadership, strengthening LS&Co’s DTC-focused strategy.
Mr. Jones has served as President, Chief Executive Officer and Director of H&R Block, Inc. since 2017 and will retire from the company on December 31, 2025. He previously served as President of Ride Sharing at Uber Technologies Inc., where he led operations, customer support, strategy and planning, product operations and marketing. Mr. Jones also served as Executive Vice President and Chief Marketing Officer at Target Corporation, overseeing brand, digital and guest experience strategy, corporate communications, investor relations and brand management of all owned brands and Target’s limited-time offering collaborations. Earlier in his career, Mr. Jones was partner and President of McKinney, an advertising agency, where he led major client engagements and organizational growth.
“Levi Strauss & Co. is an iconic company with a bold vision for the future, and I’m honored to join the board at such a pivotal moment,” said Jeffrey J. Jones II. “The company has been on a strong trajectory, deepening its connection with consumers and driving long-term, sustainable growth. I look forward to supporting the entire leadership team as they write the next chapter for this nearly 175-year-old company.”
Mr. Jones is a member of the Council for Inclusive Capitalism, the Fast Company Impact Council and the Kansas City Economic Club. He holds a Bachelor of Arts degree in Communications from the University of Dayton.
Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.
Fibre2Fashion News Desk (RM)
USA athletes and coaches across the Men’s, Women’s, Mixed Doubles, and Wheelchair National Teams will compete in uniforms that tell a story of our country’s heritage and stunning landscapes. The dark jersey features eight cascading stars in red, white and blue – symbolizing the curling stones used in competition. And in a powerful tribute to history, every jersey is adorned with at least 250 stars, celebrating the upcoming 250th anniversary of America’s independence.
Columbia Sportswear returns as official uniform sponsor for the US Curling National Team at the 2026 Winter Olympic Games, blending technical performance with national pride.
New competition and village wear feature heritage-inspired designs, Omni-Heat Infinity insulation, and 250 stars marking America’s upcoming 250th independence anniversary, with replica jerseys available for fans.
In addition to the competition jerseys, pants and hats, Columbia is providing athletes with village wear, including USA-branded parkas. The parkas are insulated with Columbia’s award-winning Omni-Heat Infinity, the brand’s warmest technology, reimagined in a patriotic gold star pattern to honor the historic games.
“Outfitting the United States Curling Team for the Olympic stage is an incredible honor and our teams have worked closely with USA Curling over the past several years to help propel them to the podium in Italy,” said Joe Boyle, President of Columbia Sportswear. “The uniforms are a testament to our commitment to these ambassadors – and we’re proud to support these athletes as they compete at the highest level.”
“Preparing for the Winter Games demands more than just talent; it requires gear that performs under pressure,” said Dean Gemmell, CEO of USA Curling. “Columbia’s technical expertise and athlete-first approach make them trusted partners as we head to Italy with confidence.”
Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.
Fibre2Fashion News Desk (RM)
Published
December 19, 2025
Chinese Global investment firm HSG has acquired a controlling stake in Italian sneaker label Golden Goose, in one of the biggest Chinese investments in a European luxury brand.
Temasek, a global investment company, and a fund managed by its wholly-owned asset manager, True Light Capital, will acquire a minority stake. US investment fund Permira will remain committed as a strategic minority shareholder, continuing its successful partnership with Golden Goose, according to a press release from the Venice-based sneaker brand.
The deal ends months of speculation that Golden Goose was about to be sold to a Chinese investor.
Financial terms of the transaction were not disclosed. The transaction is subject to customary closing conditions and regulatory approvals and is currently expected to close within the summer of 2026. Golden Goose S.p.A. expects its €480.0 million Senior Secured Floating Rate Notes due 2031 to be redeemed in full.
Golden Goose has been the fastest growing Italian fashion label in the past half-decade, stunning observers with its exceptional performance. Since 2020, the group has delivered consistent, strong, and profitable growth, with revenues increasing from €266 million in FY 2020 to €655 million in FY 2024. During this period, the group has accelerated its direct-to-consumer (DTC) channels, launched its Forward Store concept, diversified its product assortment, and invested significantly in ‘Co-Creation’ experiences, deepening connections with its customers worldwide.
This investment comes amid a period of strong financial performance for Golden Goose. In the nine months ending September 2025, the group reported double-digit growth across regions. Revenues rose 13% year-on- year, driven by 21% growth in its DTC channel and an expanded store network, which reached 227 directly operated stores, up from 97 in 2019.
The investment is underpinned by a strong strategic and cultural fit with Golden Goose’s growth ambitions. Drawing on the new investors’ combined experience and track records investing in international luxury and consumer technology brands, such as Moncler and Ermenegildo Zegna group by Temasek, and ByteDance, Pop Mart, RedNote, and Marshall by HSG, they will support Golden Goose’s international ambitions as a leading next-generation luxury brand, while preserving and continuing to invest in Golden Goose’s Made in Italy roots.
Silvio Campara, Golden Goose’s hard charging CEO, will continue to lead the group as chief executive officer, alongside the existing leadership team. Marco Bizzarri, currently a non- executive director on the Golden Goose board, will become non-executive chairman. He brings significant industry expertise, shaped by his leadership of globally renowned luxury brands including Gucci, Bottega Veneta, and Kering, and will play an important role in accelerating Golden Goose’s next phase of global expansion.
“We are delighted to welcome HSG and Temasek as strategic partners to Golden Goose as we step up our global ambitions as a leading international luxury brand. Their investment is yet another vote of confidence in the success of our model at the intersection of luxury, lifestyle, and sportswear, beloved by a growing, global community of dreamers. With their experience of scaling international leaders across luxury and the broader business spectrum, HSG and Temasek will help us unlock the vast opportunity ahead for Golden Goose. We are grateful to Permira for being integral partners to our successful journey so far and are delighted they will remain valued partners alongside HSG and Temasek,” said Campara.
“Golden Goose stands for love, empathy, authenticity and a powerful sense of community in today’s luxury landscape,” added Jiajia Zou, Partner at HSG. “We feel deeply privileged to partner with Temasek and Permira, together with Silvio and his talented team to support the brand as it enters its next exciting chapter of growth- especially internationally- while preserving and celebrating what makes Golden Goose so uniquely Italian. We look forward to contributing our global experience, resources, and deep respect for the brand’s heritage, with the shared ambition of bringing the unique joy and spirit of Golden Goose to consumers around the world, for generations to come.”
In addition, Francesco Pascalizi and Tara Alhadeff, partners at Permira, commented: “Golden Goose has led the way in defining what it is to be a next-gen luxury brand for two decades now. They have built a unique community of GG-lovers around the world whilst also building a robust and high performing business. Against a challenging backdrop for the luxury industry in 2024 and 2025, Silvio and his talented team have continued to deliver strong performance and healthy growth, proving that Golden Goose is a brand that can stand the test of time.”
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