Lifestyle apparel brand Roots Corp Q2 sales fall on store closure

Roots

11/09/2026 12:11

Overview
Canada outdoor-lifestyle brand's fiscal Q2 sales fell 2.4% yr/yr, impacted by store closure
Adjusted EBITDA loss for Q2 improved 26% yr/yr
Company agreed to be acquired by Marquee Brands in previously announced deal

Outlook
Roots expects acquisition by Marquee Brands to close in Q4 2026
Company says it is positioned to scale operations in the second half of the yr

Result Drivers
STORE CLOSURE IMPACT - Temporary closure of flagship Whistler store for relocation reduced DTC sales, per company
DISTRIBUTION CENTRE TRANSITION - Incremental costs and delays from transition to new distribution centre weighed on sales and margins
WHOLESALE AND LICENSING WEAKNESS - Lower wholesale sales to international partner and timing shifts in licensing royalties reduced P&O sales

Company press release: ID:nBw19Hs4Xa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
 
C$49.54 mln
 
Q2 Adjusted Loss Per Share
 
C$0.08
 

Analyst Coverage
The one available analyst rating on the shares is "sell"
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$4.10, about 0.7% above its September 10 closing price of C$4.07
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

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Sept 10 - Designer Brands Inc Q2 profit rises on margin expansion, lifts FY outlook

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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.)