Fourth Quarter Highlights: Sales decreased 2.9% year-over-year to $108.2 million DTC sales decreased 0.8% to $97.8 million Gross margin was 58.6% compared to 56.5% in fourth quarter of 2022 DTC gross margin increased to 59.9% from 58.7% Net income totaled $14.6 million compared to $13.0 million in the fourth quarter of 2022 Adjusted EBITDA amounted to $23.2 million versus $23.5 million in the fourth quarter of 2022 Fiscal 2023 Highlights: 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 $4.4 million TORONTO, April 10, 2024 /CNW/ - Roots ("Roots," "Roots Canada" or the "Company") (TSX:ROOT), a premium outdoor-lifestyle brand, announced today financial results for its fourth quarter and fiscal year ended February 3, 2024 ("Q4 2023" and "F2023"). All financial results are reported in Canadian dollars unless otherwise stated. Certain metrics, including those expressed on an adjusted basis, are non-IFRS measures. See "Non-IFRS Measures and Industry Metrics" below. "As we close another year, I want to acknowledge the resilience and hard work of the team at Roots in the face of a challenging economic environment. We continue to take significant steps to enhance our operations, strengthen our relationships with our customers, and make exceptional products. I remain confident in the longer-term growth prospects for the brand as the market normalizes," commented Meghan Roach, President & CEO of Roots. SELECT FINANCIAL INFORMATION (in '000s of CAD$, except where noted) Fourth quarter ended Year-to-date February 3, 2024 January 28, 2023 Change February 3, 2024 January 28, 2023 Change Total sales 108,234 111,461 (2.9 %) 262,668 272,116 (3.5 %) Direct-to-Consumer ("DTC") sales 97,755 98,533 (0.8 %) 222,467 231,230 (3.8 %) Partners & Other ("P&O") sales 10,479 12,928 (18.9 %) 40,201 40,886 (1.7 %) Gross profit 63,416 62,984 +0.7 % 152,456 156,976 (2.9 %) Gross margin1 58.6 % 56.5 % +210 bps5 58.0 % 57.7 % +30 bps5 Selling, General and Administrative ("SG&A") expenses 41,199 42,864 (3.9 %) 140,331 138,625 +1.2 % Subsidies and abatements2 - - - - 456 (100.0 %) Net income 14,621 12,980 +12.6 % 1,840 6,693 (72.5 %) Net income per share 0.36 0.31 +16.1 % 0.05 0.16 (68.8 %) Adjusted EBITDA3 23,164 23,524 (1.5 %) 19,855 26,967 (26.4 %) Free Cash Flow4 36,059 34,753 +3.8 % 12,358 4,306 +187.0 % 1 Gross margin is a supplementary financial measure that measures our gross profit as a percentage of sales. 2 Subsidies and abatements are reported as a reduction to the related expense, either as a decrease to cost of goods sold or to SG&A expenses. 3 Adjusted EBITDA is a non-IFRS Measure. See "Non-IFRS Measures and Industry Metrics" below. 4 Free cash flow is a supplementary financial measure that reflects cash flow generated from ongoing operations, calculated as our cash from operating activities less cash used in investing activities and the payment of principal on lease liabilities net of tenant allowance. 5 Basis points ("bps"). "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 we enter fiscal 2024, our robust balance sheet provides us with the flexibility to strategically purchase inventory to address consumer demand while navigating ...