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TORONTO - Premium outdoor lifestyle brand Roots Corporation (TSX:ROOT), currently valued at $1.94 billion and showing strong momentum with a 73.72% year-to-date return, announced Tuesday that shareholders elected two new directors to its board at the company’s Fiscal 2024 Annual and Special Meeting, where approximately 82% of outstanding shares were represented. According to InvestingPro analysis, the company maintains a GOOD financial health score, with 12 key insights available to subscribers.
Scott Cameron, a consultant with experience in consumer goods and former CEO of Hourglass Cosmetics, and Edward Kernaghan, President of Kernwood Limited, joined the board as Richard Mavrinac and Joel Teitelbaum did not seek re-election.
All nine director nominees were elected with over 99.8% approval. Shareholders also reappointed KPMG LLP as the company’s auditor with 99.94% support and approved an amendment to Roots’ omnibus equity incentive plan with 99.5% approval, increasing available shares under the plan from 3,679,220 to 4,084,703.
"Scott’s deep experience in Asia will be additive as we continue to explore global expansion, while Ed brings a strong background in capital markets and public company boards," said Meghan Roach, President and Chief Executive Officer of Roots, in a statement released by the company.
Cameron previously held senior executive roles at Canada Goose, including President of Asia-Pacific, while Kernaghan currently serves on several public company boards including Velan Inc. and Exco Technologies Limited.
Established in 1973, Roots operates over 100 corporate retail stores in Canada, two in the United States, and more than 100 partner-operated stores in Asia, along with its e-commerce platform.
In other recent news, Root, Inc. reported impressive financial results for the first quarter of 2025, significantly surpassing market expectations. The company achieved earnings per share of $1.07, well above the forecasted $0.17, and reported revenue of $349.4 million, exceeding the anticipated $303.9 million. This strong performance was characterized by robust top-line growth and industry-leading underwriting proficiency, with gross and net loss ratios outperforming analyst predictions by 5 to 6 points. Additionally, Root has seen a 9% quarter-over-quarter growth in policies in force, surpassing the consensus forecast of 4%.
In light of these positive results, Keefe, Bruyette & Woods raised their price target for Root’s shares to $170, maintaining an Outperform rating, while Jefferies increased their price target to $166, reiterating a Buy rating. The company also announced its third consecutive quarter of positive net income, contributing to a net combined ratio of 96%. Despite expectations for moderated policy growth for the rest of 2025, Jefferies attributes the earnings per share improvement to better loss ratios. In governance news, Root held its 2025 Annual Meeting of Stockholders, where Jerri DeVard and Nancy Kramer were elected as Class II directors for terms expiring in 2028.
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