RE:TIme to ROOT?The full year results are decent although you would never know that from the Stockhouse steerage section that wanted CEO fired.
There are really 2 choices for Roots:
1) BAD: Revenue today and worse Brand tomorrow.
2) GOOD: Better Brand today and tomorrow.
Management building a better Brand. They know and understand their target customers. FY $263M revenue DTC GM was 61.1% with $36M of inventory. Why is it important for investors to focus more on Gross and Operating Profit vs Revenue for a company like Roots? Limited SKUs - Season - Inventory - Price and Quality model. Roots was overly promotional from 2015 to 2020 which was doing long term damage to the brand as customers started to think about them in terms of cheap t-shirts on special. A good brand does not want to grow volumes at the expense of price. Luxury brands often give up sales by limiting volumes (Birkin bag, Lady Dior, etc)
Company repurchased 1,438,318 shares for $4.4 million in F2023 while FCF was $12.4M.
Management is doing OK in my opinion. Like to see low stock price with lots of share repurchases