TORONTO – Buzzy Toronto Blue Jays and Tempo apparel wasn’t enough to save Roots Corp.‘s latest quarter.
The Toronto-based retailer reported Friday a loss of $10.1 million in its first quarter, compared with $7.9 million a year earlier.
It came as the company continued its strategic review, which it has warned could result in a sale of the business, and as it pushed sports collaborations in stores.
Roots released a 50th anniversary collection for the Jays and a second round of WNBA apparel, including Tempo hoodies, varsity jackets and bag charms, in time for the team’s launch.
Chief executive Meghan Roach told analysts Friday that the partnerships helped Roots “gain traction” with customers and shift the brand toward more “disciplined, data-driven” marketing focused on driving returns.
While the partnerships may have contributed to a rise in sales, they didn’t change the company’s overall quarter.
Sales during the period ended May 2 totalled $42.6 million, up from $40 million a year earlier.
Direct-to-consumer sales alone amounted to $35.8 million, up from $34.6 million, while partner and other sales reached $6.8 million, up from $5.4 million a year ago.
Roots’ loss came in at 26 cents per share compared with a loss of 20 cents per share a year earlier.
On an adjusted basis, it lost 19 cents per share in its latest quarter compared with a loss of 18 cents per share in the same quarter last year.
Roots spent much of the quarter preparing for its switch to use logistics business Metro Supply Chain for merchandise distribution.
To make the transition, it’s been offering some products at final sale price points.
“The intentional strategy minimizes the prior season inventory that would need to be transferred and ingested into our third-party distribution centre during the move in the second quarter, and to reduce the potential processing of sales returns,” chief financial officer Leon Wu explained on the same call as Roach.
The transition is playing out while war in the Middle East is hammering manufacturers and retailers, driving up the cost of fuel and making it more expensive to ship goods or make anything that requires oil.
Roots hasn’t seen the conflict have an impact on fuel surcharges or raw materials so far.
“Longer term, I would say the impact really depends on the duration of the war,” Wu said.
That’s because Roots has long-term contracts with many of its logistics and supply chain partners, allowing it to lock in capped fuel costs, he said.
While Roots spent the bulk of its call talking about its financial results, marketing efforts and economic headwinds, it had little to say about a question some investors have: what’s happening with the retailer’s strategic review?
Launched in March, the process is meant to find ways to maximize value for shareholders. Roots has said a sale could be one of those ways.
Roach said Friday the company doesn’t intend to share updates on the process until the board has approved a transaction or determined disclosure of what’s going on is required by law or appropriate.
This report by The Canadian Press was first published June 12, 2026.
Companies in this story: (TSX:ROOT)
