Fashion
Canada’s Roots posts 6.8% sales growth in Q3 FY25 on strong DTC demand
The direct-to-consumer (DTC) sales increased 4.8 per cent to $56.8 million, driven by comparable sales growth of 6.3 per cent, reflecting enhancements to the omnichannel customer experience and stronger engagement with curated product assortments.
Canadian outdoor lifestyle brand Roots has reported solid Q3 FY25 results, with sales rising 6.8 per cent to $71.5 million, driven by DTC growth and stronger wholesale demand.
Gross margin improved to 60.8 per cent, while Adjusted EBITDA increased 5.3 per cent to $7.5 million.
Net income stood at $2.3 million, and net debt declined 5.9 per cent, reflecting disciplined execution.
The gross profit of the company increased 8.1 per cent to $43.4 million, while gross margin improved by 80 basis points (bps) to 60.8 per cent. DTC gross margin rose 140 bps to 65.4 per cent, benefiting from improved product costing and lower discounting, which offset unfavourable foreign exchange impacts on US dollar purchases, Roots said in a press release.
Partners & Other (P&O) sales grew 15.3 per cent to $14.6 million, supported by earlier wholesale orders from Roots’ operating partner in Taiwan for upcoming holiday and spring seasons, along with higher domestic wholesale sales of custom Roots-branded products.
Selling, general and administrative (SG&A) expenses increased 10.6 per cent to $38.2 million, largely due to higher variable costs linked to sales growth, strategic investments in marketing and personnel, incremental US duties on e-commerce sales, and higher share-based compensation expenses.
The net income stood at $2.3 million, or $0.06 per share during the period under review, compared with $2.4 million a year earlier. Excluding the impact of revaluation of cash-settled instruments under the share-based compensation plan, net income would have been $2.4 million, representing a 1.5 per cent improvement YoY. Adjusted EBITDA rose 5.3 per cent to $7.5 million, or 7.3 per cent on an adjusted basis excluding revaluation impacts.
“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 (CEO) 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.”
“Our disciplined approach to investing in strategic growth continues to deliver results,” said Leon Wu, chief financial officer (CFO) at Roots. “We have sustained positive sales momentum and maintained the underlying margins of those sales, supporting a stronger balance sheet with year-over-year reductions in net debt.”
Net debt declined 5.9 per cent YoY to $44.1 million, while the company also repurchased 415,200 common shares for $1.3 million under its normal course issuer bid.
For the first nine months of FY25, total sales increased 6.6 per cent to $162.2 million, with DTC sales rising 8.6 per cent and comparable sales growth reaching 11.5 per cent. The gross margin expanded to 60.9 per cent, while net loss narrowed to $10 million from $11.7 million a year earlier. Adjusted EBITDA improved to a loss of $1.7 million, reflecting continued progress towards profitability.
At the end of Q3 FY25, inventory stood at $66.6 million, reflecting preparations for peak holiday demand and higher in-transit stock. Free cash flow improved to a loss of $4.6 million, while total liquidity amounted to $34.5 million, providing financial flexibility heading into the final quarter.
Fibre2Fashion News Desk (SG)
The move follows Lulus’ recent rollout across all Nordstrom stores nationwide and reflects a broader strategy to expand reach and drive incremental revenue. As stated in the press release, each partnership offers curated assortments tailored to platform-specific customer behaviour.
Lulus has expanded its wholesale strategy with a new Amazon storefront and an online partnership with Victoria’s Secret.
Building on its Nordstrom rollout, the move enhances reach and revenue potential.
Curated assortments tailored to each platform aim to engage modern shoppers, supporting scalable growth and strengthening the brand’s presence across key retail channels.
“Today’s customer shops across platforms, and our goal is to show up for her in each of those moments with intentional, elevated product, that is distinctly Lulus,” said Crystal Landsem, CEO at Lulus. “By offering curated assortments across Amazon and Victoria’s Secret, we’re expanding access to our brand in a way that’s thoughtful, strategic, and aligned with how women shop now.”
The Amazon storefront features a curated dress assortment, including many exclusive styles, while the Victoria’s Secret collaboration introduces an online-only range targeting digitally engaged shoppers. The company noted in the press release that these initiatives support scalable growth and strengthen brand relevance.
As Lulus enters its 30th year, it is focusing on disciplined growth, scalable distribution, and long-term brand building. Alongside its Nordstrom expansion, launches on Amazon and Victoria’s Secret strengthen its position as a digitally driven brand with rising influence in modern fashion retail.
Fibre2Fashion News Desk (JP)
Support will be provided through two-way contracts for difference, where a competitively determined strike price ensures revenue stability. If alternative fuel prices fall below this level, the Italian government will compensate producers; if they exceed it, producers will repay the difference. The scheme will run until 31 December 2029.
The European Commission has approved a €6 billion (~$6.5 billion) Italian state aid scheme to produce 200,000 tonnes of renewable hydrogen annually.
Using contracts for difference, the programme will support decarbonisation in transport and industry by ensuring price stability, while promoting investment, competitiveness, and emissions reduction across high-impact sectors.
The Commission concluded that the measure is necessary, proportionate, and incentivises investment that would not occur without public support. It also found that the environmental benefits, particularly in reducing emissions from hard-to-abate sectors, outweigh potential competition distortions.
Fibre2Fashion News Desk (JP)
Bringing together two world-class brands, each with loyal supporters around the globe, the alliance is the first major sports partnership for UNIQLO in the United States. Under the agreement, UNIQLO will have naming displays in various stadium locations including above the batter’s eye in center field, on the facade beneath the press box, and on the grass along the baselines.
“With UNIQLO, we have established a historic partnership that we’re very proud to present in our ballpark,” said Stan Kasten, President & CEO, Los Angeles Dodgers. “UNIQLO is as distinguished in their field as the Dodgers are on ours. Both organizations aspire to be global leaders and to set the standard in our respective industries and communities.”
The Los Angeles Dodgers and Uniqlo have formed a landmark partnership featuring prominent “Uniqlo Field at Dodger Stadium” branding across the venue.
The collaboration, Uniqlo’s first major US sports deal, will include fan events, LifeWear giveaways, and dedicated in-store displays in California to strengthen engagement with both Dodgers fans and Uniqlo customers.
Commenting on the news, Tadashi Yanai, UNIQLO Founder and Fast Retailing Group Chairman, said, “It is a great honor to partner with the Los Angeles Dodgers – such a prestigious, world-class team that innovates with the times. For everyone at UNIQLO, this is a dream partnership that brings people everywhere together. Like the Dodgers, UNIQLO aims to be No. 1 in the world. We look forward to teaming with the Dodgers to deliver new value to fans and customers in Los Angeles and the United States as we continue our work to become the most loved and most trusted brand here and around the world.”
With a scope wider than typical sports sponsorships, the new partnership includes:
A focus on Dodgers fans
An in-stadium event will be hosted early in the coming season at UNIQLO Field at Dodger Stadium. This will be a large-scale event, introducing UNIQLO to thousands of Dodgers fans with giveaways of UNIQLO LifeWear items.
Efforts to engage UNIQLO customers
UNIQLO plans to create dedicated in store spaces at select locations in California, with a focus on the Los Angeles area, to showcase and promote the partnership.
A genuine commitment to the Los Angeles community
Joint contributions to the community will be an ongoing priority of the partnership. UNIQLO and the Dodgers are now working on a range of community-impact initiatives that specifically benefit the citizens and communities of Los Angeles, with a key focus on the next generation. Details will be announced around May.
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)
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