Roots Canada posts sales decline, loss widens

Canadian outdoor-lifestyle brand Roots' first quarter sales were 37.5 million Canadian dollars, representing a decrease of 9.7 percent. DTC sales were 31.4 million Canadian dollars, down 11.3 percent year-over-year.

P&O sales including wholesale Roots branded products, licensing to select manufacturing partners and the sale of certain custom products amounted to 6.1 million Canadian dollars.

The company said in a release that the decline in P&O sales due to lower royalties from the licensing of the Roots brand to select manufacturing partners was largely offset by growth in wholesale sales to our international operating partner in Taiwan.

"We made significant progress on our strategic initiatives this quarter, marked by robust direct-to-consumer margin growth, reduced debt, and enhanced liquidity and free cash flow on a year-over-year basis," stated Meghan Roach, president & CEO of Roots Corporation.

Gross profit for the quarter reached 22.1 million Canadian dollars, a decrease of 9.7 percent, while gross margin remained flat at 59 percent.

Net loss was 8.9 million Canadian dollars or 0.22 Canadian dollars per share, and adjusted EBITDA amounted to negative 8 million Canadian dollars compared to negative 5.8 million Canadian dollars in the first quarter of 2023.