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)

The Avantex Fashion Pitch jury awarded the 2025 prize to GoldenEye Smart Vision for its artificial intelligence-based textile quality control system.

GoldenEye Smart Vision won the 2025 Avantex Fashion Pitch for its AI-based textile quality control system, boosting efficiency and sustainability.
A special prize went to India’s Green Worms for its waste collection and recycling initiative creating jobs for disadvantaged women.
The contest highlighted innovation, digitalisation, and CSR in fashion’s future.

By perfecting the detection of visual defects in fabrics, this digital solution enhances customer satisfaction, optimises production processes and reduces raw material consumption. The jury also chose to award a special prize to Green Worms, an Indian micro-enterprise that has set up a local waste collection and processing system. Recycling waste creates sustainable jobs for women from disadvantaged socio-economic backgrounds.

‘The jury members were impressed by the quality of the designs submitted by the companies selected for this edition,’ said Claudia Franz, Director of Brand Management Apparel Fabrics & Fashion at Messe Frankfurt. ‘By recognising the GoldenEye Smart Vision project and choosing to award a special prize to Green Worms, we are supporting innovative solutions that address today’s major challenges,’ she added.

‘The choice made by the Avantex Fashion Pitch jury reflects the growing role of digitalisation in textile production processes and the ongoing transformation of the fashion world, particularly in terms of CSR issues,’ emphasises Julien Schmoll, Director of Marketing and Communications at Messe Frankfurt France. ‘These are strategic directions that we encourage and welcome,’ he concludes.

GoldenEye Smart Vision will benefit from a stand worth €2,800 (~$3320.3)at Avantex Paris 2026 and €1,000 offered by Messe Frankfurt France, plus €1,000 offered by Texpertise Network, the Messe Frankfurt Group’s textile sector network, a one-year subscription to the VLGE creative solution (worth €30,000), one year of incubation at Foundry offered by IFA Paris (worth €4,500), a keynote speech at the Circular Textile Days event, and an article in Luxiders Magazine.

Green Worms will receive €1,000 from Texpertise Network, the Messe Frankfurt Group’s textile industry network, a marketing package from Circular Textile Days, and a consultation offered by Jayne Simone Estève-Curé.

The final of the 8th edition of the Avantex Fashion Pitch competition, organised by Messe Frankfurt France, rewards the most innovative, sustainable and relevant projects for the future of fashion. Each of the eleven finalists for 2025 – Adirelounge, Ananas Fashion, CQ Studio, Delfi, Garment By, Green Worms, GoldenEye Smart Vision, Myth AI, Sequinova, Meddle, Style Shifter – had five minutes to convince the jury composed of Jayne Simone Estève-Curé, fashion and luxury expert consultant, Yoobin Jung, ventures associate sustainability at Plug and Play Tech Centre, Carol Hilsum, Investor & Tech Leader at Assembly Ventures, Claudia Frantz, Director Brand Management Messe Frankfurt, Rachel de Gooijer, Marketing Manager, Circular Textile Days.

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 (HU)

Though Vietnam’s economy rebounded strongly in 2024 and early 2025, the outlook is constrained by high global uncertainty on trade and economic policies, according to the International Monetary Fund (IMF).

Economic growth is projected to slow to 6.5 per cent in 2025 and decelerate further in 2026 given the full year effect of the new US tariffs (announced in July) and unwinding of most of the one-off 2025 government stimulus, it noted.

There is room for greater fiscal support if economic growth slows down markedly, while space for monetary easing is limited. Allowing more flexibility in the exchange rate and strengthening the resilience of the financial sector will be important, the IMF said after recently concluding its Article IV consultation with the country.

Though Vietnam’s economy rebounded strongly in 2024 and early 2025, the outlook is constrained by high global uncertainty on trade and economic policies, the IMF said.
Growth may slow to 6.5 per cent in 2025 and lose pace in 2026, it noted.
Downside risks are high.
A further escalation in global trade tensions or a tightening of global financial conditions could weaken further exports and investment.

Implementation of the ambitious reform agenda and infrastructure improvements presents an opportunity to raise medium-term growth and reduce external vulnerabilities, it noted.

Inflation in the country accelerated somewhat in recent months, reaching 3.6 per cent year on year (YoY) in June, but remains below the target. The current account surplus reached a record 6.6 per cent of gross domestic product (GDP) in 2024.

Downside risks are high. A further escalation in global trade tensions or a tightening of global financial conditions could weaken further exports and investment.

Domestically, financial stress could re-emerge from tighter financial conditions and high corporate indebtedness, the IMF observed.

On the upside, successfully implementing infrastructure projects and structural reforms could significantly boost medium-term growth. If global trade tensions subside, the economic outlook would improve, it added.

Fibre2Fashion News Desk (DS)