Business
Roots Reports First Quarter Fiscal 2026 Results & Business Update
TORONTO, June 12, 2026--Roots ("Roots," or the "Company") (TSX: ROOT), a premium outdoor-lifestyle brand, announced today financial results for its first quarter ended May 2, 2026 ("Q1 2026"). All financial results are reported in Canadian dollars unless otherwise stated. Certain metrics, including those expressed on an adjusted basis, are non-IFRS measures. See "Non-IFRS Measures and Industry Metrics" below.
About this update from Roots Corp.
Q1 sales growth of 6.5% with comparable sales growth for the seventh consecutive quarter TORONTO, June 12, 2026--(BUSINESS WIRE)--Roots ("Roots," or the "Company") (TSX: ROOT), a premium outdoor-lifestyle brand, announced today financial results for its first quarter ended May 2, 2026 ("Q1 2026"). All financial results are reported in Canadian dollars unless otherwise stated. Certain metrics, including those expressed on an adjusted basis, are non-IFRS measures. See "Non-IFRS Measures and Industry Metrics" below. Distribution Centre Transition Update In January 2026, the Company announced its strategic distribution partnership with Metro Supply Chain. The transition is anticipated to be completed by the end of the second quarter. In Q1 2026, the Company incurred $1.8 million incremental costs related to this transition, which is primarily driven by the accelerated non-cash depreciation of existing fixed assets. To minimize the cash impacts of the upcoming transition, Roots has shifted additional products to final sale to reduce the transfer of past-season inventory. Strategic Review Update As announced in March 2026, the Company and its Board of Directors continue to conduct its review of strategic alternatives, which may include, but not limited to, a sale of the Company. In Q1 2026, the Company incurred $0.6 million in incremental consulting and legal costs related to this process. First Quarter Highlights: "Roots delivered first quarter sales growth of 6.5 percent and comparable sales growth of 3.2 percent, or 16.6 percent on a two-year stacked basis, alongside a 20.7 percent reduction in net debt year-over-year. Within the first quarter, we continued to diversify our product offering with both our lifestyle and activewear offerings increasing as a percentage of sales," said Meghan Roach, President and Chief Executive Officer of Roots. "These results reflect the continued strength of the business as we advance two significant initiatives this year: the transition of our distribution centre to Metro Supply Chain, and the review of strategic alternatives being led by our Board. The costs associated with these initiatives are reflected in our results. We remain focused on disciplined execution and building long-term value for all our shareholders," continued Ms. Roach. "We are pleased with t...