NASDAQ$ROOT
Root Inc · Q4 2024 earnings
Q4 2024 earnings · · After market close · Investor relations
Briefing
Roots reported a decrease in sales but an increase in net income for the fourth quarter of fiscal year 2023.
Roots experienced a slight decrease in total sales for Q4 2023, down 2.9% year-over-year, but saw an increase in net income by 12.6%. Gross margin improved significantly, rising to 58.6%.
- Total sales decreased by 2.9% year-over-year to $108.2 million.
- Net income increased by 12.6% to $14.6 million.
- Gross margin improved to 58.6% from 56.5% in Q4 2022.
- Adjusted EBITDA slightly decreased by 1.5% to $23.2 million.
Headline financials
Revenue & EPS history
Root · Revenue · Quarterly
$108M
Forward guidance
The company did not provide specific forward-looking financial guidance for the upcoming fiscal year in this report. However, the CEO expressed confidence in longer-term growth prospects as the market normalizes.
Tailwinds
- Confidence in longer-term growth prospects as the market normalizes.
- Reduced inventory balance by 34% year-over-year.
- Strengthened cash flow leading to a 32% reduction in net debt.
- Robust balance sheet provides flexibility to strategically purchase inventory.
- Improved product costing and lower freight costs contributing to margin expansion.
Headwinds
- Navigating through short-term macroeconomic headwinds.
- Declines in conversion offsetting positive omni-channel traffic.
- Declines in certain seasonal collections, including colder weather outerwear and accessories.
- Impact of higher mix of sales during discount periods on gross margin.
- Unfavourable foreign exchange impact on U.S. dollar purchases.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q4 2024
+2.8%
Avg return
Earnings day
+6.6%
Avg return
5 days after
+21.5%
Avg return
30 days after
54%
13 / 24 earnings
Positive
+72.8%
Q3 2024
Best reaction
-25.4%
Q2 2022
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +0.3% | +3.2% | -2.6% | |
| Q4 2025 | -5.3% | -21.8% | -28.1% | |
| Q3 2025 | -8.8% | -3.2% | -9.9% | |
| Q1 2025 | +0.9% | +7.4% | +8.4% | |
| Q4 2024 | +25.6% | +34.1% | +38.7% | |
| Q3 2024 | +72.8% | +79.3% | +152.2% | |
| Q2 2024 | -22.2% | -15.5% | -30.8% | |
| Q1 2024 | +4.6% | -15.7% | -21.9% | |
| Q4 2023 | +46.5% | +150.9% | +492.7% | |
| Q3 2023 | +13.9% | +11.1% | +16.7% | |
| Q2 2023 | +0.5% | -11.3% | +8.0% | |
| Q1 2023 | +21.4% | +37.8% | +23.9% | |
| Q4 2022 | -2.7% | -16.2% | -26.3% | |
| Q3 2022 | +9.7% | +10.4% | -21.2% | |
| Q2 2022 | -25.4% | -31.2% | -55.8% | |
| Q1 2022 | +15.1% | +15.1% | -14.5% | |
| Q4 2021 | +6.5% | +17.5% | +32.5% | |
| Q3 2021 | +16.8% | +1.6% | -31.9% | |
| Q2 2020 | -23.9% | -19.2% | -6.7% | |
| Q2 2021 | -19.4% | -19.9% | -6.7% | |
| Q1 2021 | -9.1% | -10.1% | +29.6% | |
| Q4 2020 | -17.3% | -17.0% | -12.1% | |
| Q4 2019 | -15.9% | -8.7% | -7.6% | |
| Q3 2020 | -16.9% | -19.4% | -11.2% | |
| Q1 2020 | — | — | — | |
| Q3 2019 | — | — | — | |
| Q2 2019 | — | — | — | |
| Q1 2019 | — | — | — |
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