Roots sales continue to drop in third quarter

Canadian lifestyle brand Roots announced on Wednesday a 9% sales drop for the third quarter. 

The Toronto-based company said sales decreased to $63.5 million for the third quarter ended October 28, 2023, down from $69.8 million in the third quarter of 2022.

In particular, direct-to-consumer sales including corporate retail store and e-commerce sales reached $52.2 million, down 8.2% year-over-year, with a significant decline in off-price sales offset by a 3% increase in full-price sales.

Likewise, P&O sales, which includes wholesale branded products, and licensing agreements, totalled $11.3 million, down 12.3%. The decrease was in part due to timing shifts in custom Roots-branded product sales and reduced wholesale orders.

Net loss for the company totalled $0.5 million, or $0.01 per share, compared to $2.2 million, or $0.05 per share, in Q3 2022.

“Our full-priced sales have shown resilience, underscoring the appeal of our latest products and the success of our intensified marketing strategies in the third quarter. However, the prevailing economic headwinds have altered consumer spending patterns and in the third quarter, we maintained a promotional discipline which influenced our off-price sales dynamics,” said Meghan Roach, president & CEO of Roots.

Year-to-date total sales are $154.4 million, reflecting a 3.9% decline compared to the first nine months of fiscal 2022. Meanwhile, net Income loss is $12.8 million, or $0.31 per share, compared to $6.3 million, or $0.15 per share, last year.

Last month, Roots named Leslie Golts as its new chief marketing officer. Earlier this year, Roots also appointed Joey Gollish as a creative director in residence.