\n\nCAD $000s<\/b><\/p><\/td> | \nQ1 2026<\/b><\/p><\/td> | \u00a0<\/td>\n | \nQ1 2025<\/b><\/p><\/td><\/tr>\n\n\nNet loss<\/b><\/p><\/td> | \n(10,061)<\/b><\/p><\/td> | \u00a0<\/td>\n | \n(7,911)<\/b><\/p><\/td><\/tr>\n\n\nAdd the impact of:<\/i><\/p><\/td> | \n\u00a0<\/p><\/td> | \u00a0<\/td>\n | \n\u00a0<\/p><\/td><\/tr>\n | \n\nInterest expense (a)<\/p><\/td> | \n1,743<\/p><\/td> | \u00a0<\/td>\n | \n2,015<\/p><\/td><\/tr>\n | \n\nIncome taxes recovery (a)<\/p><\/td> | \n(3,471)<\/p><\/td> | \u00a0<\/td>\n | \n(2,821)<\/p><\/td><\/tr>\n | \n\nDepreciation and amortization (a)<\/p><\/td> | \n8,641<\/p><\/td> | \u00a0<\/td>\n | \n6,865<\/p><\/td><\/tr>\n | \n\nEBITDA<\/b><\/p><\/td> | \n(3,148)<\/b><\/p><\/td> | \u00a0<\/td>\n | \n(1,852)<\/b><\/p><\/td><\/tr>\n\n\nAdjust for the impact of:<\/i><\/p><\/td> | \n\u00a0<\/p><\/td> | \u00a0<\/td>\n | \n\u00a0<\/p><\/td><\/tr>\n | \n\nSG&A: Rent expense excluded from net loss due to IFRS 16 (a)<\/p><\/td> | \n(5,638)<\/p><\/td> | \u00a0<\/td>\n | \n(5,379)<\/p><\/td><\/tr>\n | \n\nSG&A: Purchase accounting adjustments (b)<\/p><\/td> | \n\u2013<\/p><\/td> | \u00a0<\/td>\n | \n(4)<\/p><\/td><\/tr>\n | \n\nSG&A: Stock option expense (c)<\/p><\/td> | \n164<\/p><\/td> | \u00a0<\/td>\n | \n75<\/p><\/td><\/tr>\n | \n\nSG&A: Changes in key personnel (d)<\/p><\/td> | \n272<\/p><\/td> | \u00a0<\/td>\n | \n54<\/p><\/td><\/tr>\n | \n\nSG&A: Tariffs on US web shipments (e)<\/p><\/td> | \n98<\/p><\/td> | \u00a0<\/td>\n | \n\u2013<\/p><\/td><\/tr>\n | \n\nSG&A: Transition of distribution centre - consulting costs (f)<\/p><\/td> | \n138<\/p><\/td> | \u00a0<\/td>\n | \n\u2013<\/p><\/td><\/tr>\n | \n\nSG&A: Strategic review costs (g)<\/p><\/td> | \n551<\/p><\/td> | \u00a0<\/td>\n | \n\u2013<\/p><\/td><\/tr>\n | \n\nSG&A: Other non-recurring items (h)<\/p><\/td> | \n127<\/p><\/td> | \u00a0<\/td>\n | \n\u2013<\/p><\/td><\/tr>\n | \n\nAdjusted EBITDA(j)<\/sup><\/b><\/p><\/td>\n(7,436)<\/b><\/p><\/td> | \u00a0<\/td>\n | \n(7,106)<\/b><\/p><\/td><\/tr>\n<\/table> \nReconciliation of net loss to Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Share:<\/b><\/p>\n\n\nCAD $000s (except per share data)<\/b><\/p><\/td> | \nQ1 2026<\/b><\/p><\/td> | \u00a0<\/td>\n | \nQ1 2025<\/b><\/p><\/td><\/tr>\n\n\nNet loss<\/b><\/p><\/td> | \n(10,061)<\/b><\/p><\/td> | \u00a0<\/td>\n | \n(7,911)<\/b><\/p><\/td><\/tr>\n\n\nReverse the impact of IFRS 16:<\/i><\/p><\/td> | \n\u00a0<\/p><\/td> | \u00a0<\/td>\n | \n\u00a0<\/p><\/td><\/tr>\n | \n\nRent expense excluded from net loss (a)<\/p><\/td> | \n(5,638)<\/p><\/td> | \u00a0<\/td>\n | \n(5,379)<\/p><\/td><\/tr>\n | \n\nDepreciation on ROU assets (a)<\/p><\/td> | \n4,339<\/p><\/td> | \u00a0<\/td>\n | \n4,117<\/p><\/td><\/tr>\n | \n\nInterest on lease liabilities (a)<\/p><\/td> | \n1,208<\/p><\/td> | \u00a0<\/td>\n | \n1,292<\/p><\/td><\/tr>\n | \n\nDeferred tax impact (a)<\/p><\/td> | \n25<\/p><\/td> | \u00a0<\/td>\n | \n(8)<\/p><\/td><\/tr>\n | \n\nTotal IFRS 16 impacts reversed<\/p><\/td> | \n(66)<\/p><\/td> | \u00a0<\/td>\n | \n22<\/p><\/td><\/tr>\n | \n\nAdjust for the impact of:<\/i><\/p><\/td> | \n\u00a0<\/p><\/td> | \u00a0<\/td>\n | \n\u00a0<\/p><\/td><\/tr>\n | \n\nSG&A: Purchase accounting adjustments (b)<\/p><\/td> | \n\u2013<\/p><\/td> | \u00a0<\/td>\n | \n(4)<\/p><\/td><\/tr>\n | \n\nSG&A: Stock option expense (c)<\/p><\/td> | \n164<\/p><\/td> | \u00a0<\/td>\n | \n75<\/p><\/td><\/tr>\n | \n\nSG&A: Changes in key personnel (d)<\/p><\/td> | \n272<\/p><\/td> | \u00a0<\/td>\n | \n54<\/p><\/td><\/tr>\n | \n\nSG&A: Tariffs on US web shipments (e)<\/p><\/td> | \n98<\/p><\/td> | \u00a0<\/td>\n | \n\u2013<\/p><\/td><\/tr>\n | \n\nSG&A: Transition of distribution centre - consulting costs (f)<\/p><\/td> | \n138<\/p><\/td> | \u00a0<\/td>\n | \n\u2013<\/p><\/td><\/tr>\n | \n\nSG&A: Transition of distribution centre - accelerated non-cash depreciation (f)<\/p><\/td> | \n1,681<\/p><\/td> | \u00a0<\/td>\n | \n\u2013<\/p><\/td><\/tr>\n | \n\nSG&A: Strategic review costs (g)<\/p><\/td> | \n551<\/p><\/td> | \u00a0<\/td>\n | \n\u2013<\/p><\/td><\/tr>\n | \n\nSG&A: Other non-recurring items (h)<\/p><\/td> | \n127<\/p><\/td> | \u00a0<\/td>\n | \n\u2013<\/p><\/td><\/tr>\n | \n\nSG&A: Amortization of intangible assets acquired by Searchlight Capital Partners, L.P. (\u201cSearchlight<\/b>\u201d) (i)<\/p><\/td> | \n382<\/p><\/td> | \u00a0<\/td>\n | \n575<\/p><\/td><\/tr>\n | \n\nTotal adjustments<\/p><\/td> | \n3,413<\/p><\/td> | \u00a0<\/td>\n | \n700<\/p><\/td><\/tr>\n | \n\nTax effect of adjustments<\/p><\/td> | \n(862)<\/p><\/td> | \u00a0<\/td>\n | \n(166)<\/p><\/td><\/tr>\n | \n\nAdjusted Net Income (Loss)(k)<\/sup><\/b><\/p><\/td>\n(7,576)<\/b><\/p><\/td> | \u00a0<\/td>\n | \n(7,355)<\/b><\/p><\/td><\/tr>\n\n\n\u00a0<\/p><\/td> | \n\u00a0<\/p><\/td> | \u00a0<\/td>\n | \n\u00a0<\/p><\/td><\/tr>\n | \n\nAdjusted Net Income (Loss) per Share(l)<\/sup><\/b><\/p><\/td>\n(0.19)<\/b><\/p><\/td> | \u00a0<\/td>\n | \n(0.18)<\/b><\/p><\/td><\/tr>\n<\/table>\n\n\n_______________<\/p><\/td><\/tr>\n | \n\nNotes:<\/p><\/td><\/tr>\n | \n\n(a)<\/p><\/td> | \nThe impact of IFRS 16 in Q1 2026 and Q1 2025 was: (i) a decrease to SG&A expenses of $1,299 and $1,262, respectively, which comprised the impact of depreciation, and lease modifications on the right-of-use (\u201cROU<\/b>\u201d) assets, net of the exclusion of rent payments from SG&A expenses, (ii) a decrease in interest expense of $1,208 and $1,292, respectively, arising from interest expense recorded on the lease liabilities in the period, and (iii) a deferred tax impact of $25 and $(8), respectively, based on tax attributes on the ROU assets and lease liabilities balances recorded.<\/p><\/td><\/tr>\n\n| (b)<\/td>\n | \nRoots and its subsidiaries acquired substantially all of the assets of Roots Canada Ltd. and all of the issued and outstanding shares of Roots International ULC, effective December 1, 2015 (the \u201cAcquisition<\/b>\u201d). As a result of the Acquisition, the Company recognized an intangible asset for lease arrangements in the amount of $6,310, which when excluding the impacts of IFRS 16, is amortized over the life of the leases and included in SG&A expenses.<\/p><\/td><\/tr>\n\n| (c)<\/td>\n | \nRepresents non-cash share-based compensation expense in respect of our Legacy Equity Incentive Plan, Legacy Employee Option Plan, and Omnibus Equity Incentive Plan.<\/p><\/td><\/tr>\n | \n| (d)<\/td>\n | \nRepresents expenses incurred in respect of the Company\u2019s efforts to recruit for vacancies in key management positions and severance costs associated with employee separations relating to such positions<\/p><\/td><\/tr>\n | \n| (e)<\/td>\n | \nPrior to the implementation of a transfer pricing structure, Roots paid tariffs on the retail sales value of US-bound eCommerce shipments. The Company has undertaken a transfer pricing study and determined that approximately 70% of the tariffs could be saved under the determined structure, which was formally put in place in March 2026. The adjustment of $98 represents the portion of tariffs that would have been saved, had the transfer pricing structure been implemented for all of Q1 2026.<\/p><\/td><\/tr>\n | \n| (f)<\/td>\n | \nRepresents $138 of consulting, implementation, and transition costs in connection to the migration of the Company\u2019s distribution centre from its in-house facility to a third-party operated facility, and $1,681 of accelerated non-cash depreciation on assets at its in-house facility. The Company does not believe the costs are reflective of the underlying business results as the migration of a distribution centre is infrequent in nature.<\/p><\/td><\/tr>\n | \n| (g)<\/td>\n | \nRepresents consulting and legal costs incurred in connection with the strategic review initiated by the Company\u2019s Board of Directors in March 2026, which are outside the scope of normal operations.<\/p><\/td><\/tr>\n | \n| (h)<\/td>\n | \nRepresents one-time costs that do not reflect the underlying profitability of the business, including consulting and legal fees related to the transfer pricing initiative and non-recurring settlement fees relating to the termination of certain operating contracts.<\/p><\/td><\/tr>\n | \n| (i)<\/td>\n | \nAs a result of the Acquisition, intangibles relating to customer relationships of $7,766 with a useful life of 10 years and licensing arrangements of $25,910 with useful lives ranging from 4 to 13 years were recognized in accordance with IFRS 3, Business Combinations<\/i>. The amortization expense resulting from the recognition of these intangible assets are non-cash in nature and are a direct result of the Acquisition. If the Acquisition had not occurred, such intangibles would not have been recognized and, consequently, the associated expenses would not have been incurred.<\/p><\/td><\/tr>\n\n| (j)<\/td>\n | \nAdjusted EBITDA excludes the impact of IFRS 16. If the impact of IFRS 16 was included for Q1 2026 and Q1 2025, Adjusted EBITDA would have been $(1,798) and $(1,723), respectively.<\/p><\/td><\/tr>\n | \n| (k)<\/td>\n | \nAdjusted Net Income (Loss) excludes the impact of IFRS 16 in Q1 2026 and Q1 2025. If the impact of IFRS 16 was included for Q1 2026 and Q1 2025, Adjusted Net Income (Loss) would have been $(7,510) and $(7,374), respectively.<\/p><\/td><\/tr>\n | \n| (l)<\/td>\n | \nAdjusted Net Income (Loss) per Share has been calculated based on the weighted average number of Shares outstanding during the period. The weighted average number of Shares during Q1 2026 and Q1 2025 was 39,196,165 and 40,441,009, respectively.<\/p><\/td><\/tr>\n<\/table> \nReconciliation of long-term debt to net debt and leverage ratio:<\/b><\/p>\n\n\n\u00a0<\/p><\/td> | \nAs at<\/b><\/p><\/td><\/tr>\n\n\nCAD $000s<\/b><\/p><\/td> | \nMay 2, 2026<\/b><\/p><\/td> | \u00a0<\/td>\n | \nMay 3, 2025<\/b><\/p><\/td> | \u00a0<\/td>\n | \nJanuary 31, 2026<\/b><\/p><\/td><\/tr>\n\n\nLong-term debt(1)<\/sup><\/p><\/td>\n$<\/p><\/td> | \n32,100<\/p><\/td> | \u00a0<\/td>\n | \n$<\/p><\/td> | \n35,490<\/p><\/td> | \u00a0<\/td>\n | \n$<\/p><\/td> | \n32,884<\/p><\/td><\/tr>\n | \n\nLess: cash<\/p><\/td> | \n\u00a0<\/p><\/td> | \n(8,652)<\/p><\/td> | \u00a0<\/td>\n | \n\u00a0<\/p><\/td> | \n(5,914)<\/p><\/td> | \u00a0<\/td>\n | \n\u00a0<\/p><\/td> | \n(28,633)<\/p><\/td><\/tr>\n | \n\nNet debt<\/b><\/p><\/td> | \n$<\/b><\/p><\/td> | \n23,448<\/b><\/p><\/td> | \u00a0<\/td>\n | \n$<\/b><\/p><\/td> | \n29,576<\/b><\/p><\/td> | \u00a0<\/td>\n | \n$<\/b><\/p><\/td> | \n4,251<\/b><\/p><\/td><\/tr>\n\n\nTrailing 12-month Adjusted EBITDA<\/p><\/td> | \n\u00a0<\/p><\/td> | \n22,996<\/p><\/td> | \u00a0<\/td>\n | \n\u00a0<\/p><\/td> | \n22,158<\/p><\/td> | \u00a0<\/td>\n | \n\u00a0<\/p><\/td> | \n23,326<\/p><\/td><\/tr>\n | \n\nLeverage ratio<\/b><\/p><\/td> | \n1.0x<\/b><\/p><\/td> | \u00a0<\/td>\n | \n1.3x<\/b><\/p><\/td> | \u00a0<\/td>\n | \n0.2x<\/b><\/p><\/td><\/tr>\n<\/table>\n\n\n_____________\u00a0<\/p><\/td><\/tr>\n | \n\nNotes:<\/p><\/td><\/tr>\n | \n\n(1)<\/p><\/td> | As at May 2, 2026, total long-term debt of $32,100 was net of $539 unamortized long-term debt financing costs. As at May 3, 2025, total long-term debt of $35,490 was net of $684 unamortized long-term debt financing costs. As at January 31, 2026, total long-term debt of $32,884 was net of $639 unamortized long-term debt financing costs.<\/td>\n<\/tr>\n<\/table> \nABOUT ROOTS<\/b><\/p> \nEstablished in 1973, Roots is a global lifestyle brand. Starting from a small cabin in northern Canada, Roots has become a global brand which, as at the end of Q1 2026, operated 96 corporate retail stores and 11 short-term pop-up locations in Canada, two stores in the United States, and an eCommerce platform, roots.com. We have more than 100 partner-operated stores in Asia, and we also operate a dedicated Roots-branded storefront on Tmall.com in China. We design, market, and sell a broad selection of products in different departments, including women\u2019s, men\u2019s, children\u2019s, and gender-free apparel, leather goods, footwear, and accessories. Our products are built with uncompromising comfort, quality, and style that allows you to feel At Home With NatureTM<\/sup>. We offer products designed to meet life\u2019s everyday adventures and provide you with the versatility to live your life to the fullest. We also wholesale through business-to-business channels and license the brand to a select group of licensees selling products to major retailers. Roots Corporation is a Canadian corporation doing business as \u201cRoots\u201d and \u201cRoots Canada\u201d.<\/p>\nFORWARD-LOOKING INFORMATION<\/b><\/p> \nCertain information in this press release contains forward-looking information. This information is based on management\u2019s reasonable assumptions and beliefs in light of the information currently available to us and is made as of the date of this press release. Actual results and the timing of events may differ materially from those anticipated in the forward-looking information as a result of various factors. Information regarding our expectations of future results, performance, achievements, prospects or opportunities or the markets in which we operate is forward-looking information. Statements containing forward-looking information are not facts but instead represent management\u2019s expectations, estimates and projections regarding future events or circumstances. Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements.<\/p> \nSee \u201cForward-Looking Information\u201d and \u201cRisk Factors\u201d in the Company\u2019s current Annual Information Form for a discussion of the uncertainties, risks and assumptions associated with these statements. Readers are urged to consider the uncertainties, risks and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. We have no intention and undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities law.<\/p> Contacts<\/b> \nRoots Investor Relations\nInvestors@roots.com<\/a>1-844-762-2343\n\nFor media or partnership inquiries, please contact:<\/b>Nicole Legate\nDirector of PR\nnlegate@roots.com<\/a>647-828-5128<\/p>","protected":false},"excerpt":{"rendered":"Q1 sales growth of 6.5% with comparable sales growth for the seventh consecutive quarterTORONTO–(BUSINESS WIRE)–Roots (\u201cRoots,\u201d or the \u201cCompany\u201d) (TSX: ROOT), a premium outdoor-lifestyle brand, announced today financial results for its first quarter…<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-20198","post","type-post","status-publish","format-standard","hentry","category-infos-businesswire"],"_links":{"self":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts\/20198","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=20198"}],"version-history":[{"count":1,"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts\/20198\/revisions"}],"predecessor-version":[{"id":20199,"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts\/20198\/revisions\/20199"}],"wp:attachment":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20198"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20198"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20198"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}} | | | | | | | | | | | | | | | | | | | | |
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