Canadian lifestyle brand Roots has reported its third consecutive quarter of year-over-year sales growth, with Q1 revenue rising 6.7% to CA$40 million (US$29.5 million).
The gain marks continued progress in the company’s multiyear turnaround, which began after it exited most of its US operations in 2020 to focus on a digital-first approach.
CEO Meghan Roach said Roots is now prioritising “high potential locations,” closing underperforming stores and refreshing its retail experience with new store designs, digital displays, and more flexible merchandising.
The brand still operates two US stores and maintains long-term ambitions in the market.
DTC sales rose 10% in the quarter, with comparable sales up 14%, although the company still posted a net loss of CA$7.9 million, a seasonal pattern expected by executives.
Net debt declined 6.7%, while updated credit terms have extended maturity to 2027.
Roots is doubling down on marketing to showcase its brand transformation, from improved product assortments and faster time-to-market to a sharper focus on activewear and fashion.
The company has also introduced a brand ambassador program and recently signed NCAA basketball player Toby Fournier as part of its influencer strategy.
“Our stores are not only a point of sale but extensions of our brand ethos,” Roach said. “We want to deepen emotional connection and deliver both inspiration and convenience.”
Roots plans to ramp up paid media, in-store events, and brand storytelling efforts through the second half of the year, with CFO Leon Wu citing marketing as a key lever for long-term growth.
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