Roots Corp T.ROOT

Alternate Symbol(s): RROTF

Consumer Cyclical Apparel Stores

Roots Corporation is a global lifestyle brand company. The Company designs, markets, and sells a range of selection of products in different departments, including women's men's, children's, and gender-free apparel, leather goods, footwear, and accessories. It operates through two segments: Direct-to-Consumer and Partners and Other. The Direct-to-Consumer segment comprises of sales through corporate retail stores and the Company's e-commerce Website www.roots.com. The Partners and Other segment consist primarily of the wholesale of Roots-branded products to its international operating partner. The Partners and Other segment also include the Company's sales from its Roots-branded storefront on business-to-consumer marketplace Website Tmall.com in China, the wholesale of Roots-branded products to select retail partners, and the sale of custom Roots-branded products to select business clients. It operates over 100 corporate retail stores in Canada and two stores in the United States.

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Roots Corp > TIme to ROOT?

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Post by Possibleidiot01on Apr 10, 2024 7:36am

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Post# 35980664

TIme to ROOT?

Sales decreased 3.5% year-over-year to $262.7 million
Gross margin was 58.0% compared to 57.7% in 2022
- DTC gross margin increased to 61.1% from 60.8%
Net income totaled $1.8 million compared to $6.7 million in 2022
Adjusted EBITDA amounted to $19.9 million compared to $27.0 million in 2022
Inventory of $36.2 million compared to $55.0 million in 2022
Net debt reduced 31.6% year-over-year to $17.0 million
Repurchased 1,438,318 shares for a total consideration of $4.4 million
Paid just under $3.06 a share which with the current price well under that. Still the level of debt improved by $7.8 million despite paying $4.4 million for the shares. if you add that $4.4 million pay to earnings , just a $ 0.5 million drop in earnings

""We have reduced our inventory balance by 34% year-over-year while maintaining our gross profit margin," stated Leon Wu , Chief Financial Officer. "This achievement has notably strengthened our cash flow, which led to a 32% reduction in net debt."

"As at February 3, 2024 , Roots had net debt of $17.0 million , improved from $24.8 million a year earlier. The Company's leverage ratio, defined as total net debt to trailing 12-months Adjusted EBITDA, was less than 0.9 times at the end of the year."

Overall , ( keep in mind I'm no financial analyst) the situation seems pretty stable with free cash flow of approximately 35-36 million.

I don't own any - just putting an argument out there.