Bank of Canada maintains policy rate, continues quantitative tightening

TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.

The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.

“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.

The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.

But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.

Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.

“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.

“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”

Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.

The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.

In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.

Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.

The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.

The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.

Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.

Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.

It will also re-evaluate its design ranks.

Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.

Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:ROOT)

The Canadian Press. All rights reserved.

OTTAWA – Prime Minister Justin Trudeau says Ukraine should be allowed to strike deep inside Russia, regardless of Moscow threatening that this would draw Canada and its allies into direct war.

Russian President Vladimir Putin has warned that the NATO military alliance would draw itself into war if it allows Ukraine to use donated weapons to make long-range strikes inside Russia.

His comments come five weeks after Ukrainian forces stormed the border and put parts of Russian territory under foreign occupation for the first time since the Second World War.

Trudeau says Canada “fully supports Ukraine using long-range weaponry” to prevent Russian strikes on hospitals and daycares across the country.

He says Ukraine must win in fighting back against Russia’s invasion, or it will encourage other large countries to try absorbing their neighbours.

In May, Washington began allowing Ukraine to use American weaponry to strike inside Russia, but only for targets near the border being used to attack Ukraine’s second-largest city, Kharkiv.

“Canada fully supports Ukraine using long-range weaponry to prevent and interdict Russia’s continued ability to degrade Ukrainian civilians (and) infrastructure, and mostly to kill innocent civilians in their unjust war,” Trudeau told reporters at a news conference in Sainte-Anne-de-Bellevue, Que., on Friday.

“(Putin) is trying to deeply destabilize the international rules-based order that protects us all, not just in every democracy around the world, but in all countries around the world,” Trudeau said.

This report by The Canadian Press was first published Sept. 13, 2024.

— With files from the Associated Press.

The Canadian Press. All rights reserved.

OTTAWA – Prime Minister Justin Trudeau says the NDP is caving to political pressure from Conservative Leader Pierre Poilievre when it comes to their stance on the consumer carbon price.

Trudeau says he believes Jagmeet Singh and the NDP care about the environment, but it’s “increasingly obvious” that they have “no idea” what to do about climate change.

On Thursday, Singh said the NDP is working on a plan that wouldn’t put the burden of fighting climate change on the backs of workers, but wouldn’t say if that plan would include a consumer carbon price.

Singh’s noncommittal position comes as the NDP tries to frame itself as a credible alternative to the Conservatives in the next federal election.

Poilievre responded to that by releasing a video, pointing out that the NDP has voted time and again in favour of the Liberals’ carbon price.

British Columbia Premier David Eby also changed his tune on Thursday, promising that a re-elected NDP government would scrap the long-standing carbon tax and shift the burden to “big polluters,” if the federal government dropped its requirements.

This report by The Canadian Press was first published Sept. 13, 2024.

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