Roots operates more than 100 corporate retail stores in Canada and two stores in the US. Credit: Roots Corp./commons.wikipedia.org.

Lifestyle brand Roots has reported total net sales of C$49.4m ($36.40m) in the second quarter (Q2) of fiscal year (FY) 2023, up 3.4% from C$47.8m ($35.22m) in the same period in FY22.

Direct-to-customers (DTC) sales, which include corporate retail store and e-commerce sales, declined by 3.5% to C$37.1m over the period. Meanwhile, DTC’s gross margin was 62.7% in Q2 FY23 against 64.0% in Q2 2022.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The retailer’s gross profit for the quarter ending 29 July 2023 was C$27.4m, a 3.2% year-over-year decline compared with C$28.3m in the prior year’s quarter.

Its gross margin for the period decreased to 55.5% in Q2 2023 from 59.3% in Q2 2022.

Driven by higher store labour costs and other factors, Roots’ selling, general and administrative (SG&A) expenses also increased by 5.6% to C$32.3m in Q2 2023 against C$30.6m a year ago.

The retailer’s net loss was C$5.3m in Q2 FY23, compared to C$3.2m in Q2 FY22.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Its net loss per share was C$0.13 in the quarter against C$0.08 a year ago.

In the year to date, Roots generated total sales of C$90.9m and DTC sales fell 4.4% to C$72.5m.

Gross profit for the six-month period was C$51.9m and its net loss was C$13.3m.

Roots chief financial officer Leon Wu said: “We have made substantial progress towards improving our inventory position, which increased 2.0% year-over-year compared to 29% at the end of Q1 2023.

“Despite the competitive promotional environment, we have remained disciplined on our discounting while executing our inventory management strategies to minimise the impact on gross margin. By leveraging our pack-and-hold collections and tightening orders, we remain on track to right-size inventory by the end of the year.”