Canada's Roots Q1 loss widens on distribution shift costs

Roots

12/06/2026 12:15

Overview
Canada outdoor-lifestyle brand's fiscal Q1 sales grew 6.5% yr/yr, with comparable sales up
Net loss widened in Q1 due to costs from distribution centre transition and strategic review
Gross margin declined, impacted by more final sale items and unfavorable FX on purchases

Outlook
Roots expects distribution centre transition to Metro Supplyish by end of Q Chain to fin2
Company continues strategic review, which may include a sale
Roots did not provide specific financial guidance for the current quarter or full year in the press release 

Result Drivers
PRODUCT MIX & TRAFFIC - Sales growth driven by positive traffic and a curated product assortment
WHOLESALE & LICENSING - Growth in wholesale, custom products, and licensing channels boosted P&O sales
DISTRIBUTION CENTRE TRANSITION & FX - Gross margin decline due to higher mix of final sale items ahead of distribution centre transition and unfavorable FX on U.S. dollar purchases

Company press release: ID:nBw5JDrNra

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
 
C$42.60 mln
 
Q1 Adjusted EPS
Miss
-C$0.19
-C$0.17 (1 Analyst)
Q1 EPS
 
-C$0.26

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)