Roots reports sales growth in Q1

Canadian lifestyle brand Roots reported that Q1 sales, for the period ended May 2, rose to 6.5 percent to 42.6 million Canadian dollars, while it continues its review of strategic alternatives, including the possible sale of the company.

Sales growth in Q1 was driven by both its direct-to-consumer (DTC) and wholesale businesses, with DTC sales, which include stores and e-commerce, increasing by 3.3 percent to 35.8 million Canadian dollars, while comparable sales climbed 3.2 percent. This was achieved through “positive traffic across both channels, supported by a thoughtfully curated product assortment,” explains the retailer.

For the retailer’s wholesale Roots-branded products and custom products, it reported “significant growth,” increasing by 26.6 percent to 6.8 million Canadian dollars in Q1 2026, compared to 5.4 million Canadian dollars in Q1 2025.

Despite the sales gains, Roots reported a net loss of 10.1 million Canadian dollars, or 26 cents per share, compared with a loss of 7.9 million Canadian dollars, or 20 cents per share, a year earlier.

As the first quarter historically represents approximately 14 percent of the full year sales at Roots, the impacts of the non-recurring projects had “a more pronounced impact” on net earnings. Adjusted net loss, which excludes costs associated with the company's distribution centre transition and strategic review, was 7.6 million Canadian dollars, compared with 7.4 million Canadian dollars in Q1 2025.

Meghan Roach, president and chief executive officer of Roots, said in a statement: “Within the first quarter, we continued to diversify our product offering with both our lifestyle and activewear offerings increasing as a percentage of sales.

“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.”

In March, Roots launched a strategic review to maximise value for shareholders, including selling the company, and has spent 600,000 Canadian dollars on consulting and legal fees.