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Canadian brand Roots’ Q2 FY25 sales rise 6.3%, DTC growth hits 12.7%

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Canadian brand Roots’ Q2 FY25 sales rise 6.3%, DTC growth hits 12.7%



Canadian apparel and lifestyle brand Roots Corporation has reported a strong second quarter (Q2) for fiscal 2025 (FY25) ended August 2, with total sales rising 6.3 per cent year-over-year (YoY) to $50.8 million. The direct-to-consumer (DTC) sales, comprising retail stores and e-commerce, climbed 12.7 per cent YoY to $41 million, supported by a robust 17.8 per cent comparable sales growth across both channels.

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)



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Dutch goods trade rises in H1 2025 despite weaker fuel exports: CBS

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Dutch goods trade rises in H1 2025 despite weaker fuel exports: CBS



In the first half (H1) of 2025, Netherlands international trade in goods increased compared with the same period in 2024, according to Statistics Netherlands (CBS) latest figures on Dutch international trade. The total export value rose by 1.9 per cent year-over-year (YoY), encompassing both re-exports to other countries and exports of goods produced within the Netherlands.

The total value of goods imported was 2 per cent higher than it was in the first half (H1) of 2024, CBS said in a press release.

In each month of Q1 2025, more goods were traded than in the same month of 2024. In April and May, trade was down from last year, but in June it was higher once again.

Dutch international trade in goods rose in the first half (H1) of 2025 compared with H1 2024, according to Statistics Netherlands (CBS).
Exports increased 1.9 per cent and imports 2 per cent YoY.
While mineral fuel trade declined, exports of other goods were largely stable or higher.
Trade with Belgium, France, and the UK weakened, whereas exports to Germany and the US and imports from China grew.

Imports and exports of mineral fuel declined in H1 2025: the import value was 11 per cent lower, while the export value was 15 per cent lower. In other product categories, exports were higher than the previous year or were down by less than those of mineral fuels.

There has been geopolitical turbulence around the world in recent months, and trade with certain neighbouring countries seems to have suffered particularly in the first half of 2025. The value of imports from Belgium and the United Kingdom was down, for instance, as was the value of exports to Belgium and France, added the release.

Exports to the Netherlands’ key trading partner, Germany, saw an increase, while imports from China rose 5 per cent YoY in the first half (H1) of 2025. Exports to the United States climbed 11 per cent, with the most notable growth occurring in February, March, and April.

Fibre2Fashion News Desk (SG)



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India restores import duty exemptions for leather export inputs

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India restores import duty exemptions for leather export inputs



The exemptions had been discontinued on March ** this year as the government did not issue a fresh notification before the expiry of the previous one. As a result, duty exemptions were unavailable to Indian exporters from April until the new notification was issued on October **.

Under the latest notification, imports of materials including wet blue, crust, and finished leather; buckles, zips, soles, linings, and fittings will continue to enjoy Nil customs duty when used in the manufacture of leather garments, footwear, and accessories meant for export.



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Italian group Prada’s retail sales up 9% in 9 months of 2025

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Italian group Prada’s retail sales up 9% in 9 months of 2025



Italian fashion group Prada continues to deliver solid performance with retail sales of €3,647 million (‘$4.26 billion), up 9 per cent in the nine months ended September 30, 2025. In the third quarter, the company’s retail sales grew 8 per cent, in line with the second quarter.

Prada achieved double-digit growth in Asia Pacific (10 per cent), with improving trends in Mainland China. Europe rose 6 per cent, supported by resilient local demand and steady tourism. The Americas advanced 15 per cent, showing sequential acceleration in the third quarter. Japan grew 3 per cent, with stronger local and traveller demand after exceptional tourism in 2024. The Middle East delivered robust 21 per cent growth, moderating slightly in the third quarter.

Prada Group’s retail sales increased 9 per cent to €3,647 million (‘$4.26 billion) in the nine months to September 2025, with the third quarter up 8 per cent.
Asia Pacific grew 10 per cent, the Americas 15 per cent, Europe 6 per cent, Japan 3 per cent, and the Middle East 21 per cent.
Miu Miu surged 41 per cent, while Prada remained resilient.

“The consistency of our results, in a complex macroeconomic environment, confirms the strength of our brands and the validity of our strategy. With the one just closed, the group has delivered 19 quarters of uninterrupted growth. We continue to focus on creativity, product excellence and craftsmanship as foundations for enduring relevance and long-term development. These principles guide us as we navigate an evolving landscape with confidence, discipline and responsibility,” Patrizio Bertelli, Prada Group chairman and executive director, said.

Prada showed good resilience, with retail sales at -1.6 per cent over the nine-month period and -0.8 per cent in Q3. The brand continued to express its creative dynamism, driving a well-balanced product category mix and a consistent focus across strategic price points. The Womenswear SS26 fashion show offered a unique reflection on the role of clothes in reaction to the overloaded contemporary culture, the company said in a press release.

Miu Miu progressed on a healthy growth trajectory at 41 per cent y-o-y, with the third quarter at 29 per cent, driven by widespread appreciation across categories and geographies, as its captivating aesthetics continued to nurture the global influence of the brand. The SS26 fashion show underlined the social importance of work in women’s life. The FW25 campaign re-imagined wardrobe archetypes through a fluid interplay of tailoring and feminine silhouettes, while the Atheneum pop-up initiative embedded collegiate codes with the brand’s irreverence.

“Our performance confirms the health of our brands and further solid, diligent execution by our teams. Prada accelerated versus the previous quarter; Miu Miu has maintained a sustained growth trajectory for 4 years, including in this quarter that was facing triple-digit comps. Despite a still challenging environment, we remain confident in our trajectory, focusing on products and experiences that spark emotional engagement, while further improving our speed and flexibility,” Andrea Guerra, group chief executive officer, said.

Fibre2Fashion News Desk (RR)



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