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Jennifer Braun Published
April 10, 2025
Canadian outdoor lifestyle brand Roots announced on Wednesday a 0.1% increase in total sales, for the fiscal year 2025, on the back of a strong fourth quarter.
The Toronto-based company said sales reached $262.7 million for the year ended February 1. Direct-to-consumer sales were $223.3 million, a 0.4% increase compared to the previous year, supported by better product margins and more effective discounting strategies.
Full-year adjusted net income grew 41.1% to $6.0 million. However, including the impairment charge, the company posted a full-year net loss of $33.4 million, compared to a profit of $1.8 million in fiscal 2025.
In the fourth quarter, Roots posted $110.8 million in sales, up 2.4% year-over-year. DTC sales, which includes revenue from corporate retail stores and e-commerce, rose 3.6% to $101.2 million in the fourth quarter.
Roots said this performance was driven by particularly strong demand for its core fleece and activewear collections, as well as the successful execution of its holiday assortment and marketing campaigns. The company also credited improvements to its omnichannel customer experience, which helped drive conversion both online and in stores.
“In the fourth quarter of fiscal 2025, we delivered a 7.5% increase in DTC comparable sales, a 270bps rise in gross margin, and Adjusted EBITDA growth of 9.1% year-over-year. 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,” said Meghan Roach, president and chief executive officer.
“Our momentum has continued into the first quarter of fiscal 2025. As we look forward, we remain focused on delivering quality, innovation, and value to our customers while positioning Roots for sustained growth in the quarters ahead.”