Roots Corporation (TSE:ROOT)
TSX:ROOT
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Earnings Data
Report Date
Jun 12, 2026Before Open (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
-0.17Last Year’s EPS
-0.2Same Quarter Last Year
Based on 1 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized multi-quarter momentum driven by DTC strength, record gross margins (61.3%), improved profitability (full-year net income of $4.7M vs prior-year loss), and a materially stronger balance sheet (net debt down 42% to $4.3M and net leverage <0.2x). Operational execution — including double-digit growth in key categories (Cloud Fleece doubled YoY; Activewear double-digit) — and strategic initiatives (10-year Metro distribution partnership, AI-driven inventory tools, targeted marketing and brand collaborations) support a positive growth and margin outlook. Offsetting items include timing-driven declines in Partners & Other (Taiwan wholesale), higher SG&A/marketing and new duties, a full-year free cash flow decline, some inventory buildup alongside isolated Q4 stockouts, and near-term macro/freight uncertainty. Overall, the positive operational and financial improvements materially outweigh the manageable headwinds and one-time/transition costs reported on the call.Company Guidance
Q4 Revenue Growth
Total Q4 sales of $115.5 million, up 4.2% year-over-year (from $110.8M); DTC segment Q4 sales $107.0 million, up 5.7% YoY. Comparable DTC same-store sales +7.3% in Q4 and +14.8% on a 2-year stack.
Full Year Revenue and Comparable Sales
Fiscal 2025 revenue of $277.7 million, up 5.6% YoY (from $262.9M). Full year DTC sales $239.5 million, up 7.3% YoY, with full year comparable sales +9.5% (+12.8% on a 2-year stack).
Record Gross Margin Expansion
Record full year gross margin of 61.3%, up 150 basis points YoY (from 59.8%). Q4 total gross margin 61.8%, up 50 bps YoY; Q4 DTC gross margin 62.5%, up 10 bps YoY. Full year DTC gross margin 63.4%, up 80 bps YoY.
Profitability Improvement — Net Income and Adjusted EBITDA
Full year net income of $4.7 million ($0.12/share) versus a net loss of $33.4M in FY2024; adjusted EBITDA increased 9.5% to $23.3 million for FY2025. Q4 net income $14.7M ($0.37/share) versus Q4 2024 loss impacted by prior-year impairment.
Direct-to-Consumer Strength and Omnichannel Execution
DTC traffic and conversion improved in Q4 driven by marketing, merchandising (tighter assortments, disciplined buys) and investments in personalization and 'shoppability' — supporting stronger e-commerce and in-store conversion, and higher sales per square foot.
Product Momentum — Cloud Fleece and Activewear
Cloud Fleece collection more than doubled year-over-year and became a meaningful part of the Sweats business; Activewear delivered double-digit growth, indicating successful merchandising and category expansion.
Marketing & Brand Collaborations Delivered Results
Holiday 'Anything Roots' campaign featuring Seth Rogen ran across OOH, social, Spotify and streaming; collaborations (Wicked x Universal, NFL Super Bowl capsule, Roots x Blue Jays) generated strong brand engagement and positive customer response in Q4.
Strategic Distribution Partnership
Announced a 10-year strategic distribution partnership with Metro Supply Chain to move distribution to a technology-enabled facility in Ontario; transition expected by July 2026 to strengthen supply chain and omnichannel capabilities.
AI and Data Investments Driving Operational Gains
AI-driven inventory allocation and replenishment tools improved stockout rates and sales productivity; automation in customer service reduced call center costs; investments in data infrastructure position the company for further AI-driven improvements.
Balance Sheet Improvements and Capital Return
Net debt reduced 42% YoY to $4.3 million; net leverage <0.2x trailing 12-month adjusted EBITDA. Total liquidity $73.6M (cash $28.6M + $45M available borrowing). Repurchased ~1.28M shares for $4.0M in FY2025 under NCIB.
TSE:ROOT Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
TSE:ROOT Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 09, 2026 | C$3.95 | C$3.98 | +0.76% |
Dec 10, 2025 | C$3.39 | C$3.34 | -1.47% |
Sep 10, 2025 | C$3.17 | C$3.25 | +2.52% |
Apr 09, 2025 | C$2.18 | C$2.29 | +5.05% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Roots Corporation (TSE:ROOT) report earnings?
Roots Corporation (TSE:ROOT) is schdueled to report earning on Jun 12, 2026, Before Open (Confirmed).
What is Roots Corporation (TSE:ROOT) earnings time?
Roots Corporation (TSE:ROOT) earnings time is at Jun 12, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is TSE:ROOT EPS forecast?
TSE:ROOT EPS forecast for the fiscal quarter 2026 (Q1) is -0.17.
