Roots Corp. · TSX:ROOT
Roots — Shareholder Meeting (June 2019)
26 slides from Roots's shareholder meeting presentation, Jun 14, 2019
Slide 1: Fiscal 2018 Annual General Meeting
Fiscal 2018 Annual General Meeting FRIDAY, JUNE 14, 2019
Slide 2: Jim Gabel, President & Chief Executive Officer
Jim Gabel PRESIDENT & CHIEF EXECUTIVE OFFICER
Slide 3: Today's Agenda
Today’s Agenda FORMAL BUSINESS CORPORATE UPDATE
Slide 4: Erol Uzumeri, Chairman of the Board
Erol Uzumeri CHAIRMAN OF THE BOARD
Slide 5: Disclaimer
Disclaimer All figures discussed in this presentation are stated in $CAD millions, unless otherwise noted. Non-IFRS Measures and Retail Industry Metrics This presentation makes reference to certain non-IFRS measures including certain metrics specific to the industry in which we operate. These measur
Slide 6: Formal Business
Formal Business PRESENTATION OF FINANCIAL STATEMENTS ELECTION OF DIRECTORS RE-APPOINTMENT OF AUDITORS
Slide 7: Corporate Update
Corporate Update FRIDAY, JUNE 14, 2019
Slide 8: Jim Gabel, President & Chief Executive Officer
Jim Gabel PRESIDENT & CHIEF EXECUTIVE OFFICER
Slide 9: Community Genuine Integrity Freedom
Community Genuine Integrity Freedom
Slide 10: We are a premium outdoor lifestyle brand
CERESIeYiEE City PREMIUM ($$$) We are a premium outdoor lifestyle brand Function and Comfort Meets Style Heritage Brand Outdoor and Trend Inspired Premium Quality Moderate to Premium Price Point MASS ($) OUTDOOR Cabin Roots
Slide 11: Our Global Product Range
Our Global Product Range Leather Goods Footwear Seasonal Excitement Exciting products ~30% for repeat visits Women’s and Men’s Apparel Monthly 10% 2% OF FISCAL 2018 DTC REVENUE OF FISCAL 2018 DTC REVENUE Seasonal favourites Perennial Favourites that bring you back ~50% year after year Accessories Ki
Slide 12: Our Consumer Bandwidth
Our Consumer Bandwidth Style Collector Everyday Adventurer Comfortable Camper Roots
Slide 13: Results Update
Results Update
Slide 14: Expanding Global Footprint
Expanding Global Footprint CANADA STORES U.S. STORES COUNTRIES SHIPPED TO 115 8 >50 o More stores outside of Canada CORPORATE -OWNED o Seamless omni-channel shopping experience in Canada and U.S. • NEW STORES • RENOVATIONS AND RELOCATIONS • ENHANCED ONLINE SHOPPING EXPERIENCE • OPTIMIZATION OF CANAD
Slide 15: Building Brand Voice
Building Brand Voice Roots x Shawn Mendes Roots x Air Canada Roots x NCC True to Our Nature International Sweatpants International Beaver Brand Campaign Launch Day Day
Slide 16: Creating Product Excitement
Creating Product Excitement Cozy Cabin Seymour Jacket Mont Royal Bag Hybrid Jacket Essential Jogger
Slide 17: Opening Integrated Distribution Centre
Opening Integrated Distribution Centre Opening Q2 2019 o Better support Canadian and U.S. sales growth expectations o Bring together store and eCommerce fulfillment o Improve distribution costs o Manage inventory across stores and eCommerce into single facility o Deliver to stores and consumers fast
Slide 18: Fiscal 2018 Financial Results Summary
Fiscal 2018 Financial Results Summary Fiscal 2018 Fiscal 2017 Total Sales $329.0M $326.1M Comparable Sales Growth (1.3%) 12.2% DTC Gross Margin 61.2% 59.0% Adjusted EBITDA $41.9M $52.6M Adjusted Net Income $20.2M $29.1M See Disclaimer: Non-IFRS Measures and Retail Industry Metrics
Slide 19: Q1 Fiscal 2019 DTC Comparable Sales Growth & Sales
Q1 Fiscal 2019 DTC Comparable Sales Growth & Sales Comparable Sales Growth Q1 Fiscal 2019 Sales 1.5% $54.4M Q1 Fiscal 2019 $51.0M +5.5% YoY Increase in DTC Sales +12.8% 6.8% YoY Increase in P&O Sales Q1 Fiscal 2018 Q1 Fiscal 2018 Q1 Fiscal 2019 See Disclaimer: Non-IFRS Measures and Retail Industry M
Slide 20: Q1 Fiscal 2019 DTC Gross Margin
Q1 Fiscal 2019 DTC Gross Margin 59.1% o Improved overall inventory position in connection with move to new 54.7% Distribution Centre o Meaningful progress realigning inventory through aggressive markdowns and promotional activity Q1 Fiscal Q1 Fiscal 2018 2019
Slide 21: Q1 Fiscal 2019 Adjusted EBITDA & Adjusted Net Loss
Q1 Fiscal 2019 Adjusted EBITDA & Adjusted Net Loss Q1 Fiscal 2019 Adjusted EBITDA Q1 Fiscal 2019 Adjusted Net Loss Q1 Fiscal 2018 Q1 Fiscal 2019 Q1 Fiscal 2018 Q1 Fiscal 2019 ($3.1M) ($4.5M) ($6.2M) ($7.2M) See Disclaimer: Non-IFRS Measures and Retail Industry Metrics Adjusted EBITDA and Adjusted Ne
Slide 22: Outlook
Outlook
Slide 23: Leverage operational investments
DRIVING GROWTH 1 2 3 4 5 Leverage Expand Expand U.S. Expand in Accelerate operational Canadian omni- omni-channel international growth in investments channel footprint markets via leather and made or footprint partners footwear underway See Disclaimer: Forward-Looking Information
Slide 24: Fiscal Operational Targets
F I S C A L 2 0 1 9 O P E R AT I O N A L TA R G E T S Renovations & Canadian Store U.S. Store International eCommerce Expansions Openings Openings Markets Continue to: 5-7 1-2 1-2 Add stores in Taiwan and China 17-19% Stores Stores Stores Explore entry into Percent of DTC new markets sales See Discl
Slide 25: Fiscal 2019 Financial Targets
Fiscal 2019 Financial Targets IN $ MILLIONS Total Sales Adjusted EBITDA Adjusted Net Income 358-375 20-24 329 20 46-50 42 F2018A F2019E F2018A F2019E F2018A F2019E See Disclaimer: Forward-Looking Information Non-IFRS Measures and Retail Industry Metrics
Slide 26: Our Vision
OUR VISION To inspire the world to experience everyday adventures with comfort and style Roots