Roots Corporation (ROOT) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Each forward-looking statement is subject to risks and uncertainties that could cause actual results to differ materially from those projected. The company refers listeners to its third quarter management discussion and analysis dated December 9th, 2025 and or its annual information form for a summary of the significant assumptions underlying forward-looking statements and certain risks and factors that could affect the company's future performance and ability to deliver on these statements. Roots undertakes no obligation to update or revise any forwarder. 71.5 million, representing a 6.8% increase compared to the same period last year. Direct-to-consumer sales rose 4.8% to 56.8 million, and comparable sales were 6.3%, driven by strong traffic online and conversion in stores. On a two-year stack basis, comparable sales growth stands at 12.1%. Partners and others also recorded a robust quarter, with sales increasing 15.3%, due partially to earlier orders from our Taiwanese partner and strong growth in our BV channel. Our direct-to-consumer growth margin was 65.4% and improved 140 basis points, reflecting continued progress in reducing markdowns, improving product mix, and strengthening our supply chain discipline. Our adjusted EBITDA was 7.5 million compared to 7.1 million last year, and excluding the impact of the DSU evaluation, Adjusted EBITDA was 7.6 million compared to 7 million last year, an increase of 7.3%. Overall, our Q3 demonstrates that our strategy is working. We delivered improved execution across merchandising, marketing, and operations, while continuing to invest in long-term health of the brand. The broader retail environment remained dynamic during the quarter, and we experienced an unusually warm fall. Despite these conditions, our brand continues t...