Roots Q2 sales climb 6.3%

Canada’s Roots announced on Wednesday sales were up 6.3% to $50.8 million for the quarter ended August 2, 2025, on the back of higher direct-to-consumer sales during the three months.

The lifestyle brand said DTC sales, made up of retail store and e-commerce sales, were $41.0 million, a 12.7% increase from $36.4 million in Q2 2024, driven by strong comparable sales growth of 17.8%. 

Despite the DTC gains, Partners & Other (P&O) sales, comprising of wholesale Roots branded products, licensing to select manufacturing partners and the sale of certain custom products, fell to $9.7 million in Q2 2025 down from $11.3 million in Q2 2024. The decline was due to lower wholesale sales, partially offset by continued momentum across the other lines of business within the segment.

Gross margin rose to 60.7%, up 430 basis points from last year, supported by stronger product margins and lower discounting. DTC gross margin improved to 63.2%, compared to 61.7% in Q2 2024.

Net loss narrowed to $4.4 million, or $0.11 per share, compared with a loss of $5.2 million, or $0.13 per share, in the prior year. On an adjusted basis, excluding the revaluation of share-based compensation, the loss would have been $4.0 million, a 26.8% year-over-year improvement.

“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 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 of fiscal 2025, Roots reported sales of $90.7 million, up 6.5%, with DTC sales up 11.6% and comparable sales up 16.1%. Net loss for the period was $12.3 million, improving from $14.1 million last year.

Looking ahead, Roach added that “While early in the third quarter, we continue to experience positive trends during the back-to-school period.”