Summer promotions boost Roots sales but didn’t keep retailer from $4.4M net loss

Roots' NHL jackets are seen in the jacket archive at Roots' leather factory in Toronto, Thursday, June 5, 2025. THE CANADIAN PRESS/Cole Burston

A handful of summer promotions helped Roots Corp. achieve a 6.3 per cent jump in sales in most recent quarter but wasn’t enough to deliver a profit to the retailer.

The Toronto-based apparel maker said Wednesday its second-quarter net loss narrowed to $4.4 million compared with a $5.2-million loss a year earlier. The result for the period ended Aug. 2 amounted to a loss of 11 cents per share for the quarter compared with a loss of 13 cents per share a year prior.

Meanwhile, second-quarter sales reached $50.8 million, up from $47.7 million.

Roots CEO Meghan Roach told financial analysts on a conference call Wednesday that it is typical for the company to generate about 30 per cent of its sales in the first half of the year, often leaving it with a loss as it heads into the fall and winter.

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However, the second-quarter results this year came in spite of tense trade relations between Canada and the U.S., which have made shoppers more cautious.

“Despite the dynamic global operating environment, Roots continues to build positive momentum as we head into the second half of the year,” Roots chief financial officer Leon Wu said on the same call as Roach.

Much of that momentum has come from direct-to-consumer sales, which include corporate retail store and e-commerce sales. 

In the second quarter, direct-to-consumer sales totalled $41 million, up 12.7 per cent from the year before. Direct-to-consumer comparable sales growth was 17.8 per cent.

Wu saw the increase as a reflection of customers responding well to the company’s spring and summer collections as well as its recent marketing campaigns.

The campaigns helped Roots increase engagement and made the brand feel more accessible, Roach said.

Included in the campaigns were instances where Roots transformed a parking lot into nature-inspired spaces for golf and tennis.

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The company also hosted a pop-up in Toronto to promote a summer capsule collection with ginger ale maker Canada Dry. The collection included hoodies and graphic tees featuring Canada Dry’s logo and vintage advertisements.

“Together, these collaborations amplified brand heat, reinforced our heritage positioning, and extended our reach for authentic Canadian cultural moments,” Roach said. 

“We will continue to use selective partnerships and experiences to build that brand perception and support full-price sell through into fall.”

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Tara Deschamps, The Canadian Press

This report by The Canadian Press was first published Sept. 10, 2025.