Roots Corporation (ROOT) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

even though fluctuations exist in our underlying earnings, with the first half typically generating a loss and the second half positive earnings. While this remains a normal part of our business cycle, we were pleased to see a 16.8% reduction in adjusted EBITDA losses, excluding the DSU revaluation in Q1 2015. Our balance sheet also remains healthy. Our enhanced inventory balance positions treats well to support growth, and net debt declined 6.7% year-over-year. I will now turn to the high list of our strategic initiatives in the first quarter. Despite a dynamic environment, we remain focused on executing a clear, disciplined strategy designed to direct sustainable growth, deepen customer connections, and strengthen our position as a premium lifestyle brand. As discussed in previous calls, at the end of 2024, we launched a new multi-pronged marketing strategy with investments focused on paid media, customer engagement, and elevating our brand messaging. In March, we announced a long-term partnership with NCAA Canadian basketball player Toby Fournier of Duke University. Toby is our first-ever female activewear ambassador, and this relationship underscores Ruth's commitment to supporting emerging female athletes and highlights the breadth of its soft performance-based activewear. As part of the partnership, Toby will appear in sports-adjacent marketing content, representing Ruth's activewear off the court and Ruth's brand on the court through her passion and dedication to excellence. A natural extension of our WNBA licensing partnership, this brand ambassadorship deepens our commitment to empowering the next generation of female athletes and leveling the playing field in sports. Our brand ambassador program completed its first full year cycle this quarter also, and has...