Canada’s Roots announced on Wednesday sales were up 6.8% to $71.5 million for its third quarter ended November 1, as demand for its core products, improved marketing and stronger in-store performance lifted results.
Direct-to-consumer revenue increased 4.8% to $56.8 million, supported by 6.3% comparable sales growth driven by enhancements to the company’s omnichannel experience and continued interest in the brand’s product assortment.
Partners and other revenue, comprising of wholesale Roots branded products, licensing to select manufacturing partners and the sale of certain custom products, rose 15.3% to $14.6 million, boosted by earlier wholesale orders in Taiwan and stronger domestic wholesale sales of custom Roots-branded products.
Gross profit climbed 8.1% to $43.4 million, with gross margin improving to 60.8% from 60.0% last year. Net income was $2.3 million, or $0.06 per share, compared with $2.4 million, or $0.06 per share, a year ago.
“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,” said Meghan Roach, president and chief executive officer of Roots Corporation. “We remain disciplined in execution and committed to strengthening the foundations of the brand to support long-term value creation.”
Year to date, Roots generated $162.2 million in sales, up 6.6% from last year, while DTC revenue increased 8.6%. The company reported a year-to-date net loss of $10.0 million, an improvement from a $11.7 million loss a year earlier.
Looking ahead, Roach added that “While early in the fourth quarter, we continue to experience positive trends.”
