Roots Corp
TSX:ROOT
Roots Corp
Roots Corp. engages in the provision of leather goods, apparel, and accessories. The company is headquartered in Toronto, Ontario and currently employs 2,044 full-time employees. The company went IPO on 2017-10-24. The firm offers a range of products, including women’s and men’s apparel, leather goods, footwear, accessories, and kids, toddler and baby apparel. The Company’s segments include Direct-to-Consumer and Partners and Other segment. The Direct-to-Consumer segment comprises sales through corporate retail stores and electronic commerce. The Partners and Other segment consist primarily of the wholesale of Roots-branded products to its international operating partner and the royalties earned on the retail sales of Roots-branded products by its partner. The firm operates approximately 100 retail stores across Canada, two in the United States and ship to more than 60 countries worldwide through its roots.com, the Company's electronic Commerce platform. The company also has approximately 100 partner operated stores and sell its products through third-party retail sites in Asia.
Roots Corp. engages in the provision of leather goods, apparel, and accessories. The company is headquartered in Toronto, Ontario and currently employs 2,044 full-time employees. The company went IPO on 2017-10-24. The firm offers a range of products, including women’s and men’s apparel, leather goods, footwear, accessories, and kids, toddler and baby apparel. The Company’s segments include Direct-to-Consumer and Partners and Other segment. The Direct-to-Consumer segment comprises sales through corporate retail stores and electronic commerce. The Partners and Other segment consist primarily of the wholesale of Roots-branded products to its international operating partner and the royalties earned on the retail sales of Roots-branded products by its partner. The firm operates approximately 100 retail stores across Canada, two in the United States and ship to more than 60 countries worldwide through its roots.com, the Company's electronic Commerce platform. The company also has approximately 100 partner operated stores and sell its products through third-party retail sites in Asia.
Revenue Growth: Roots reported Q3 revenue of $71.5 million, a 6.8% increase over last year, with strong direct-to-consumer and partner channel performance.
Comparable Sales: Comparable sales grew 6.3%, driven by robust online traffic and improved store conversions.
Margin Expansion: Direct-to-consumer gross margin improved by 140 basis points to 65.4%, supported by fewer markdowns and better product mix.
Profitability: Adjusted EBITDA increased to $7.5 million from $7.1 million, reflecting higher sales and margin gains.
SG&A Investment: SG&A expenses rose 10.6% due to increased marketing spend and personnel costs, with an additional $2–3 million in marketing expected for Q4.
Positive Holiday Trends: Early Black Friday and holiday season trends remain positive, with strong consumer engagement and effective marketing activations.
