Roots' Q4 sales climb on strong holiday demand and DTC strength
Roots store Credits: Roots Toronto-based lifestyle brand Roots ended its fiscal year on a high note, reporting a solid fourth quarter performance that helped offset a flat topline for the full year. The company saw fourth-quarter sales climb 2.4 percent to 110.8 million Canadian dollars. Direct-to-consumer (DTC) comparable sales rose 7.5 percent, bolstered by strong holiday demand and improved customer engagement across channels. Roots’ gross margin in the quarter increased 270 basis points to 61.3 percent, while adjusted EBITDA was up 9.1 percent year-over-year, landing at 25.3 million Canadian dollars and adjusted net income rose 9.6 percent to 16 million Canadian dollars. CEO Meghan Roach credited the team’s strategic focus for the Q4 rebound. “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,” she said. Roach added that the company is entering fiscal 2025 with momentum, pointing to early strength in Q1 as a promising sign. For the full fiscal year 2024, total sales were essentially flat at 262.9 million Canadian dollars, but DTC comparable sales rose 3.3 percent. Roots improved its gross margin to 59.8 percent for the year, up 180 basis points, and increased adjusted EBITDA by 7.3 percent to 21.3 million Canadian dollars. Adjusted net income for the year was 6 million Canadian dollars, up 41.1 percent versus the previous year.
Toronto-based lifestyle brand Roots ended its fiscal year on a high note, reporting a solid fourth quarter performance that helped offset a flat topline for the full year.
The company saw fourth-quarter sales climb 2.4 percent to 110.8 million Canadian dollars. Direct-to-consumer (DTC) comparable sales rose 7.5 percent, bolstered by strong holiday demand and improved customer engagement across channels.
Roots’ gross margin in the quarter increased 270 basis points to 61.3 percent, while adjusted EBITDA was up 9.1 percent year-over-year, landing at 25.3 million Canadian dollars and adjusted net income rose 9.6 percent to 16 million Canadian dollars.
CEO Meghan Roach credited the team’s strategic focus for the Q4 rebound. “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,” she said. Roach added that the company is entering fiscal 2025 with momentum, pointing to early strength in Q1 as a promising sign.
For the full fiscal year 2024, total sales were essentially flat at 262.9 million Canadian dollars, but DTC comparable sales rose 3.3 percent. Roots improved its gross margin to 59.8 percent for the year, up 180 basis points, and increased adjusted EBITDA by 7.3 percent to 21.3 million Canadian dollars.
Adjusted net income for the year was 6 million Canadian dollars, up 41.1 percent versus the previous year.
