Canada's Roots reports jump in Q3 sales

Roots

10/12/2025 12:09

Overview

Roots, outdoor-lifestyle brand's fiscal Q3 sales rose 6.8% yr/yr

Net income for fiscal Q3 decreased slightly from last year

Company repurchased 415,200 shares for C$1.3 mln under normal course issuer bid

Outlook

Roots reports positive trends early in the fourth quarter

Roots focuses on strengthening brand foundations for long-term value

Result Drivers

DTC SALES GROWTH - Driven by enhancements to the omnichannel customer experience and strong customer engagement with brand initiatives

WHOLESALE SALES INCREASE - Boosted by early orders from a wholesale partner in Taiwan and higher domestic sales of custom products

GROSS MARGIN IMPROVEMENT - Attributed to product margin expansion from improved costing and lower discounting

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
C$71.50 mln
Q3 EPS
C$0.06
Q3 Net Income
C$2.30 mln
Q3 Gross Margin
60.80%


Analyst Coverage

The one available analyst rating on the shares is "buy"

The average consensus recommendation for the apparel & accessories retailers peer group is "buy"

Wall Street's median 12-month price target for Roots Corp is C$4.00, about 18% above its December 9 closing price of C$3.39

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nBw9yVF4Wa

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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.)