Canadian outdoor-lifestyle brand Roots recorded total sales of C$262.92m ($185.44m) in the fiscal year 2024 (FY24) – a marginal rise of 0.1% from the previous year’s C$262.67m.
Adjusted for the additional week in FY24 that accounted for C$2.2m, sales saw a more noticeable increase of 0.9%.
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The company’s direct-to-consumer (DTC) sales edged up to C$223.26m in FY24, a 0.4% climb from C$222.48m in the previous fiscal year.
Partner and other sales, which include wholesale activities, licensing and custom products, reached C$39.66m in FY24, down from C$40.20m in FY23.
The company’s gross profit for FY24 stood at C$157.13m – a 3.1% increase from the previous year.
Gross margin improved to 59.8% – a rise of 180 basis points compared to 58.0% in FY23.
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By GlobalDataRoots’ selling, general and administrative expenses reached C$143.5m in FY24, a 2.3% increase from C$140.33m in FY23.
The company reported net loss of C$33.44m during the fiscal year against net income of C$1.84m in FY23.
This translates to loss per share of C$0.83 against earnings per share of C$0.05 in the previous year. The downturn was attributed to a non-cash impairment charge on intangible assets and subsequent deferred tax impacts.
In the fourth quarter (Q4) of FY24, Roots posted total sales of C$110.81m, up 2.4% from C$108.23m in Q4 FY23.
The gross profit for the quarter rose by 7.2% to C$67.59m with the gross margin reaching 61.3%, an improvement of 270 basis points over Q4 FY23’s figure of 58.6%.
Net loss for Q4 2024 stood at C$21.70m versus the previous year’s income of C$14.62m. Its loss per share for the quarter was C$0.54 from earnings per share of C$0.36 in Q4 2023, again due to non-cash impairment charges and associated deferred tax impacts.
As of 1 February 2025, Roots’ net debt was reported at C$7.4m – a 56.7% decline from C$17m in FY23.
Roots president and chief executive officer Meghan Roach said: “Our strong performance reflects the impressive execution by the team across our strategic initiatives. Customers responded well to our holiday products, our enhanced brand engagement and our improved omnichannel customer experience.”
