Root Earnings Reports

Roots experienced a decline in total sales and net income in Q1 2024 compared to the previous year, primarily due to lower off-price sales and a disciplined inventory management approach. Despite this, the company saw an increase in DTC gross margin, improved free cash flow, and a significant reduction in net debt.

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%.

Root delivered its first $200 million-plus quarter of Direct Written Premium, along with $6 million in Gross Profit and $27 million in Direct Contribution, driven by improvements in loss ratio.