07:30 AM EDT, 06/13/2025 (MT Newswires) -- Roots (ROOT.TO) on Friday said its first-quarter net loss narrowed, coming in slightly below forecasts, as revenue increased.

The clothing retailer said the net loss shrunk to $7.9 million, or $0.20 per share, from $8.9 million, or $0.22 per share, in the prior year period. The result was slightly below the consensus analyst estimate of a loss of $0.19 per share, according to FactSet.

Sales rose 6.7% to $40 million, beating the $38.6 million estimate. The company said direct-to-consumer (DTC) sales increased 10.2% to $34.6 million, and DTC comparable sales growth was 14.1%.

"Our first-quarter results, marking the third consecutive quarter of year-over-year growth in sales, gross margin, and adjusted EBITDA, speaks to the growing resonance of the Roots brand and the discipline with which we are executing our strategic priorities," said Meghan Roach, chief executive officer. "From elevated marketing to improved product availability and AI-operational enhancements, we drove meaningful gains across key performance metrics."