Overview

* Roots fiscal Q2 sales rise 6.3% yr/yr to C$50.8 mln

* DTC sales grow 12.7%, driven by 17.8% comparable sales increase

* Net loss improves to C$4.4 mln from C$5.2 mln last year

Outlook

* Company continues to see positive trends in back-to-school period

* Company focuses on creating long-term value and deepening customer engagement

Result Drivers

* COMPARABLE SALES GROWTH - Roots attributes 17.8% increase in comparable sales to brand strength and product resonance

* DTC SALES - 12.7% rise in DTC sales driven by innovative collaborations and enhanced customer experiences

* P&O SALES DECLINE - Lower wholesale sales to international partners due to inventory optimization efforts

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales C$50.80

mln

Q2 EPS -C$0.11

Q2 Net -C$4.40

Income mln

Q2 Gross 60.7%

Margin

Analyst Coverage

* The one available analyst rating on the shares is "buy"

* The average consensus recommendation for the apparel & accessories retailers peer group is "buy"

* Wall Street's median 12-month price target for Roots Corp ( RROTF ) is C$3.75, about 15.5% above its September 9 closing price of C$3.17

* The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)