(Toronto) Roots initially built its brand on all things comfy and cozy, but its president and CEO says activewear is now “becoming a core part” of the brand.
The category, which at Roots includes leggings, sweatsuits, sports bras and bike shorts, has seen such strong double-digit growth that Roach plans to make it a key part of the company’s future.
“This is an area (where) you’ll see us continue to grow,” she told analysts on a conference call Friday.
The Toronto-based sportswear retailer’s rise to fame has been shaped over many years, including being the official designer and supplier of Team Canada’s Olympic uniform.
Consumers have plenty of choices when it comes to workout gear and other apparel that fits their athletic needs. In addition to the multitude of sports brands like Nike and Adidas, shoppers have also turned to Lululemon Athletica, Alo and Vuori, which has intensified competition in the activewear category.
Mme Roach believes Roots’ presence in this category is due to the fit, feel and popularity of its products.
“Our product resonates with consumers because it can be worn on so many different occasions,” she said.
“We’ve found that customers come back again and again for some of these flagship products in our activewear collection.”
More losses
Roots said it lost $5.2 million in its latest quarter, a slight improvement from a loss of $5.3 million in the same quarter last year.
The company said its loss was 13 cents per share for the year ended Aug. 3, flat with a year earlier.
In presenting the results, Mr.me Roach reminded analysts that the first half of the year is typically “seasonal,” accounting for only 30% of the company’s annual sales.
Sales totaled $47.7 million, down from $49.4 million in the same quarter in 2023.
The decline came as direct-to-consumer sales totaled 36.4 million, down from 37.1 million a year earlier, while comparable sales edged down 0.2%.
The company’s partner and other sales segment totaled $11.3 million, down from $12.3 million.
On an adjusted basis, Roots said it lost 11 cents per share in its latest quarter, compared with an adjusted loss of 12 cents per share a year earlier.
The numbers reflect the fact that Roots continued to face inventory issues in its Cooper fleece line, which first emerged in the previous quarter.
Roots recently began using artificial intelligence (AI) to help with daily inventory replenishment and said more tools to aid in allocation will be rolled out in the next quarter.
Beyond this period, the company intends to continue exploring AI and renovate more of its stores.
Roots announced Friday that Chief Product Officer Karuna Scheinfeld has resigned.