Select Country Afghanistan Albania Algeria Andorra Angola Argentina Armenia Aruba Australia Austria Azarbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bhutan Bolivia Bosnia&Herzegovina Botswana Brazil Brunei Bulgaria Burkino Faso Burundi Cambodia Cameroon Canada Canary Islands Chad Chile China Colombia Congo Costa Rica Cote d Ivoire Croatia Cuba Cyprus Czech Republic Denmark Djibouti Dominican Republic Ecuador Egypt El Salvador Estonia Ethiopia Fiji Finland France French Polynesia Gabon Gambia Georgia Germany Ghana Greece Grenada Guatemala Guinea Guyana Haiti Honduras Hong Kong Hungary Iceland India Indonesia Iran Iraq Ireland Israel Italy Ivory Coast Jamaica Japan Jordan Kazakhstan Kenya Korea Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Macau Macedonia Madagascar Malawi Malaysia Maldives Mali Malta Mauritania Mauritius Mexico Micronesia Moldova Monaco Mongolia Morocco Mozambique Myanmar Namibia Nepal Netherlands Netherlands Antilles New Caledonia New Zealand Nicaragua Niger Nigeria Norway Oman Pakistan Palestine Panama Papua New Guinea Paraguay Peru Philippines Poland Portugal Puerto Rico Qatar Reunion Romania Russia Rwanda Sahara Samoa Saudi Arabia Scotland Senegal Seychelles Sierra Leone Singapore Slovakia Slovenia Somalia South Africa Spain Sri Lanka Sudan Surinam Sweden Switzerland Syria Taiwan Tajikstan Tanzania Thailand Togo Trinidad &Tobago Tunisia Turkey Turkmenistan Uganda Ukraine UAE UK USA Uruguay Uzbekistan Vanuatu Vatican city Venezuela Vietnam West Indies Yemen Yugoslavia Zambia Zimbabwe

Select State Andaman and Nicobar Islands Andhra Pradesh Assam Chandigarh Dadra and Nagar Haveli Delhi Gujarat Haryana Himachal Pradesh Jammu and Kashmir Kerala Lakshadweep Maharashtra Manipur Meghalaya Karnataka Nagaland Orissa Pondicherry Punjab Rajasthan Tamil Nadu Telangana Tripura West Bengal Sikkim Arunachal Pradesh Mizoram Daman and Diu Goa Bihar Madhya Pradesh Uttar Pradesh Chhattisgarh Jharkhand Uttarakhand

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)