Roots Corporation | Interim Condensed Consolidated Financial Statements

ROOTS CORPORATION
Interim Condensed Consolidated Financial Statements
For the 13 and 39 week periods ended November 2, 2019 and November 3, 2018
In Canadian dollars
(Unaudited)

1
ROOTS CORPORATION
Interim Condensed Consolidated Statement of Financial Position
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
As at November 2, As at February 2,
Note 2019 2019
Assets
Current assets:
Cash $ 453 $ 1,991
Accounts receivable, net 10 7,712 6,627
Inventories 70,373 49,533
Prepaid expenses 4,460 6,443
Income taxes recoverable 2,257 –
Derivative assets 4, 10 – 366
Total current assets 85,255 64,960
Non-current assets:
Loan receivable 10, 12 562 562
Lease receivable 10 1,590 –
Fixed assets 75,181 64,163
Right-of-use assets 5 135,589 –
Intangible assets 193,769 198,724
Goodwill 52,705 52,705
Total non-current assets 459,396 316,154
Total assets $ 544,651 $ 381,114
Liabilities and Shareholders' Equity
Current liabilities:
Bank indebtedness 10 $ 1,809 $ 12,409
Accounts payable and accrued liabilities 10 34,628 22,291
Deferred revenue 4,398 5,498
Income taxes payable – 6,445
Derivative liabilities 4, 10 485 –
Current portion of lease liabilities 5, 10 29,566 –
Current portion of long-term debt 6, 10 4,984 4,984
Total current liabilities 75,870 51,627
Non-current liabilities:
Deferred tax liabilities 22,501 22,761
Deferred lease costs 2 – 10,063
Finance lease obligation 2 – 504
Long-term portion of lease liabilities 5, 10 123,781 –
Long-term debt 6, 10 126,611 80,031
Other non-current liabilities 2 – 1,424
Total non-current liabilities 272,893 114,783
Total liabilities 348,763 166,410
Shareholders' equity:
Share capital 7 196,903 196,853
Contributed surplus 9 4,452 3,975
Accumulated other comprehensive income (loss) (356) 268
Retained earnings (deficit) (5,111) 13,608
Total shareholders' equity 195,888 214,704
Total liabilities and shareholders' equity $ 544,651 $ 381,114
See accompanying notes to unaudited interim condensed consolidated financial statements.
On behalf of the Board of Directors:
"Erol Uzumeri" Director
"Richard P. Mavrinac" Director & Audit Committee Chair

2
ROOTS CORPORATION
Interim Condensed Consolidated Statement of Net Income (Loss)
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
For the 13 and 39 week periods ended November 2, 2019 and November 3, 2018
November 2, 2019 November 3, 2018 November 2, 2019 November 3, 2018
Note (13 weeks) (13 weeks) (39 weeks) (39 weeks)
Sales $ 86,377 $ 86,979 $ 202,412 $ 198,205
Cost of goods sold 38,998 39,049 95,513 88,060
Gross profit 47,379 47,930 106,899 110,145
Selling, general and administrative expenses 40,697 42,465 118,863 115,014
Income (loss) before interest expense and income
taxes expense (recovery) 6,682 5,465 (11,964) (4,869)
Interest expense 10 4,159 1,393 11,605 3,736
Income (loss) before income taxes 2,523 4,072 (23,569) (8,605)
Income taxes expense (recovery) 11 554 1,277 (6,117) (1,729)
Net income (loss) $ 1,969 $ 2,795 $ (17,452) $ (6,876)
Basic earnings (loss) per share 8 $ 0.05 $ 0.07 $ (0.41) $ (0.16)
Diluted earnings (loss) per share 8 $ 0.05 $ 0.07 $ (0.41) $ (0.16)
See accompanying notes to unaudited interim condensed consolidated financial statements.

3
ROOTS CORPORATION
Interim Condensed Consolidated Statement of Comprehensive Income (Loss)
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
For the 13 and 39 week periods ended November 2, 2019 and November 3, 2018
November 2, 2019 November 3, 2018 November 2, 2019 November 3, 2018
Note (13 weeks) (13 weeks) (39 weeks) (39 weeks)
Net income (loss) $ 1,969 $ 2,795 $ (17,452) $ (6,876)
Other comprehensive income (loss),
net of taxes:
Items that may be subsequently
reclassified to profit or loss:
Effective portion of changes in fair
value of cash flow hedges 4, 10 (398) 419 112 3,517
Cost of hedging excluded from
cash flow hedges 4, 10 121 54 359 178
Tax impact of cash flow hedges 4, 10 74 (126) (125) (984)
Total comprehensive income (loss) $ 1,766 $ 3,142 $ (17,106) $ (4,165)
See accompanying notes to unaudited interim condensed consolidated financial statements.

4
ROOTS CORPORATION
Interim Condensed Consolidated Statement of Changes in Shareholders' Equity
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
For the 39 week periods ended November 2, 2019 and November 3, 2018
Accumulated
Retained other
Share Contributed earnings comprehensive
November 2, 2019 (39 weeks) Note capital surplus (deficit) income (loss) Total
Balance, February 2, 2019 $ 196,853 $ 3,975 $ 13,608 $ 268 $ 214,704
Adjustment on adoption of IFRS 16 2 – – (1,267) – (1,267)
Balance, February 3, 2019 $ 196,853 $ 3,975 $ 12,341 $ 268 $ 213,437
Net loss – – (17,452) – (17,452)
Net gain from change
in fair value of cash flow hedges,
net of income taxes – – – 346 346
Transfer of realized gain on cash
flow hedges to inventories, net
of income taxes – – – (970) (970)
Share-based compensation 9 – 527 – – 527
Issuance of shares 7, 9 50 (50) – – –
Balance, November 2, 2019 $ 196,903 $ 4,452 $ (5,111) $ (356) $ 195,888
Accumulated
Retained other
Share Contributed earnings comprehensive
November 3, 2018 (39 weeks) Note capital surplus (deficit) income (loss) Total
Balance, February 4, 2018 $ 195,994 $ 1,675 $ 2,208 $ (904) $ 198,973
Net loss – – (6,876) – (6,876)
Net gain from change
in fair value of cash flow hedges,
net of income taxes – – – 2,710 2,710
Transfer of realized gain on cash
flow hedges to inventories, net
of income taxes – – – (1,083) (1,083)
Share-based compensation 8 – 1,985 – – 1,985
Issuance of shares 8 859 (206) – – 653
Balance, November 3, 2018 $ 196,853 $ 3,454 $ (4,668) $ 723 $ 196,362
See accompanying notes to unaudited interim condensed consolidated financial statements.

5
ROOTS CORPORATION
Interim Condensed Consolidated Statement of Cash Flows
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
For the 39 week periods ended November 2, 2019 and November 3, 2018
November 2, 2019 November 3, 2018
(39 weeks) (39 weeks)
Cash provided from (used in):
Operating activities:
Net loss $ (17,452) $ (6,876)
Items not involving cash:
Depreciation and amortization 29,100 9,130
Share-based compensation expense 527 1,985
Deferred lease recovery – (565)
Amortization of lease intangibles – 407
Interest expense 11,605 3,736
Income taxes recovery (6,117) (1,729)
Gain on lease modification (457) –
Interest paid (4,345) (3,310)
Payment of interest on lease liabilities (6,787) –
Taxes paid (2,159) (2,036)
Change in working capital:
Accounts receivable (1,085) (3,551)
Inventories (20,840) (31,979)
Prepaid expenses 1,983 (1,111)
Accounts payable and accrued liabilities 12,337 8,963
Deferred revenue (1,100) (532)
(4,790) (27,468)
Financing activities:
Issuance of long-term debt 50,000 40,000
Long-term debt financing costs (163) (66)
Repayment of long-term debt (3,737) (3,737)
Finance lease payments – (282)
Payment of principal on lease liabilities, net of tenant allowance (12,775) –
Proceeds from issuance of shares – 653
33,325 36,568
Investing activities:
Additions to fixed assets (19,473) (28,997)
Tenant allowance received – 6,034
(19,473) (22,963)
Increase (decrease) in cash 9,062 (13,863)
Cash and bank indebtedness, beginning of period (10,418) 1,809
Cash and bank indebtedness, end of period $ (1,356) $ (12,054)
See accompanying notes to unaudited interim condensed consolidated financial statements.

ROOTS CORPORATION
Notes to Interim Condensed Consolidated Financial Statements
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
6
1. Nature of operations and basis of presentation
Nature of operations
Established in 1973, Roots is a premium outdoor lifestyle brand. We unite the best of cabin and city
through unmistakable style built with uncompromising comfort and quality. We offer a broad range of
products that embody a comfortable cabin-meets-city style including: women’s and men’s apparel,
leather goods, footwear, accessories, and kids, toddler and baby apparel. Starting from a little cabin in
Algonquin Park, Canada, Roots has grown to become a global brand. As at November 2, 2019, we had
115 corporate retail stores in Canada, seven corporate retail stores in the United States, 114 partner-
operated stores in Taiwan, 35 partner-operated stores in China, one partner-operated store in Hong
Kong, and a global eCommerce platform. Roots Corporation is a Canadian corporation doing business
as “Roots” and “Roots Canada”.
Roots Corporation was incorporated under the Canada Business Corporations Act on October 14,
2015. Its head office and registered office is located at 1400 Castlefield Avenue, Toronto, Ontario M6B
4C4. Roots Corporation and its subsidiaries are collectively referred to in these interim condensed
consolidated financial statements (the “interim financial statements”) as the “Company” or “Roots
Corporation”.
The Company’s common shares (“Shares”) are listed on the Toronto Stock Exchange (“TSX”) under
the trading symbol “ROOT”.
The Company experiences seasonal fluctuations in the financial results of its retail business, as a
meaningful portion of its sales and earnings occur in the third and fourth fiscal quarters. The Company’s
working capital requirements generally increase in the periods preceding these peak periods, and it is
not uncommon for net income (loss) before interest expense, income taxes expense (recovery) and
depreciation and amortization (“EBITDA”) to be negative in the first two fiscal quarters.
Basis of presentation
(a) Statement of compliance:
These interim financial statements have been prepared in accordance with International
Accounting Standard (“IAS”) 34, Interim Financial Reporting, as issued by the International
Accounting Standards Board (“IASB”) and the accounting policies described in the
Company’s audited consolidated financial statements as at and for the 52 week period ended
February 2, 2019 (“annual financial statements”), except for the new standards adopted
during the 39 week period ended November 2, 2019, as described below. They do not include
all of the information required for a complete set of International Financial Reporting
Standards (“IFRS”) financial statements. However, select explanatory notes are included to
explain events and transactions that are significant to an understanding of the changes in
the Company’s financial position and performance since the annual financial statements.

ROOTS CORPORATION
Notes to Interim Condensed Consolidated Financial Statements (continued)
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
7
These interim financial statements were authorized for issue by the Company’s Board of
Directors on December 5, 2019.
(b) Basis of measurement:
These interim financial statements were prepared on a historical cost basis, except for
derivative financial instruments consisting of forward hedging contracts, and share-based
compensation, which are measured at fair value.
(c) Use of estimates and judgments:
In preparing these interim financial statements, management has made judgments,
estimates and assumptions that affect the application of accounting policies and the reported
amounts of assets and liabilities, income and expense. Actual results may differ from these
estimates.
The significant judgments made by management in applying the Company’s accounting
policies and the key sources of estimation uncertainty were the same as those that applied
to the annual financial statements, except as described in Note 2.
2. Significant accounting policies
Except as described below, the significant accounting policies as disclosed in the annual financial
statements have been applied consistently in the preparation of these interim financial statements:
(a) New standards and interpretations adopted in the period:
In 2016, the IASB issued IFRS 16, Leases (“IFRS 16”), replacing IAS 17, Leases (“IAS 17”),
and related interpretations. The standard introduces a single on-balance sheet recognition
and measurement model for lessees, eliminating the distinction between operating and
finance leases. The lessee recognizes a right-of-use asset representing its control of and
right to use the underlying asset and a lease liability representing its obligation to make future
lease payments. Lessors continue to classify leases as finance and operating leases.
IFRS 16 became effective for annual periods beginning on or after January 1, 2019. The
Company adopted the standard on February 3, 2019 under the modified retrospective
approach, with no restatement of the prior comparative period.

ROOTS CORPORATION
Notes to Interim Condensed Consolidated Financial Statements (continued)
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
8
Substantially all of the Company’s existing leases are real estate leases for its retail stores,
distribution centres, leather factory, and corporate head office, and all were classified as
operating leases prior to adoption of IFRS 16. Other operating leases include IT equipment
and certain machinery. On February 3, 2019, the Company recognized right-of-use assets
and lease liabilities for its leases previously classified as operating leases under IAS 17,
except for certain classes of underlying assets for which the lease terms are 12 months or
less. The depreciation expense on right-of-use assets and interest expense on lease
liabilities replaced rent expense, which was previously recognized on a straight-line basis
under IAS 17 over the term of a lease. There are no significant impacts to the Company’s
existing finance leases under IAS 17.
The weighted average lessee’s incremental borrowing rate applied to lease liabilities
recognized in the interim condensed consolidated statement of financial position on February
3, 2019 was 5.8%. The average lease term remaining as at February 3, 2019 was 4.8 years.
IFRS 16 permits the use of recognition exemptions and practical expedients. The Company
applied the following recognition exemptions and practical expedients:
• contracts that were identified as leases under IAS 17 were not reassessed under IFRS
16;
• a single discount rate was applied to a portfolio of leases with reasonably similar
underlying characteristics;
• certain short-term leases were excluded from IFRS 16 lease accounting;
• initial direct costs were excluded in the measurement of the right-of-use assets on
transition; and
• hindsight was used in determining lease term at the date of initial application.
On the date of initial application, the Company applied the requirements of IAS 36,
Impairment of Assets, and recorded a post-tax impairment of $1,267 on right-of-use assets
on February 3, 2019.

ROOTS CORPORATION
Notes to Interim Condensed Consolidated Financial Statements (continued)
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
9
The following table summarizes the adjustments to opening balances resulting from the initial
adoption of IFRS 16:
As previously reported IFRS 16
under IAS 17, transition Balances as at
February 2, 2019 adjustments February 3, 2019
Assets:
Lease receivable $ – $ 1,808 $ 1,808
Fixed assets 64,163 (794) 63,369
Right-of-use assets – 137,294 137,294
Intangible assets 198,724 (2,106) 196,618
Total impact to assets 136,202
Liabilities and shareholders’ equity:
Deferred tax liabilities $ 22,761 $ (460) $ 22,301
Current portion of lease liabilities – 28,273 $ 28,273
Deferred lease costs 10,063 (10,063) –
Finance lease obligation 504 (504) –
Long-term portion of lease liabilities – 121,647 121,647
Other non-current liabilities 1,424 (1,424) –
Retained earnings 13,608 (1,267) 12,341
Total impact to liabilities and shareholders’ equity 136,202
The following table provides a reconciliation between operating lease commitments disclosed
under IAS 17 as at February 2, 2019 and lease liabilities recognized on February 3, 2019 as
a result of the adoption of IFRS 16:
Operating lease commitments disclosed as at February 2, 2019 $ 197,588
Discounted using the weighted average incremental borrowing rate as at
February 3, 2019 157,404
Finance lease obligations recognized as at February 2, 2019 504
Leases excluded from lease liability due to recognition exemptions (20)
Leases with a commencement date after February 3, 2019 (7,968)
Opening balance of lease liabilities, February 3, 2019 $ 149,920
Recorded in the interim condensed consolidated statement of financial position as follows:
Current portion of lease liabilities $ 28,273
Long-term portion of lease liabilities 121,647
$ 149,920

ROOTS CORPORATION
Notes to Interim Condensed Consolidated Financial Statements (continued)
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
10
As a result of adopting IFRS 16, the Company updated its lease accounting policies as
follows:
Leased assets
The Company recognizes a right-of-use asset and a lease liability as the present value of
future lease payments when the lessor makes the leased asset available for use by the
Company.
Lease liabilities include the net present value of fixed payments, variable lease payments
that are based on an index or a rate, amounts expected to be payable by the Company under
residual value guarantees, and the exercise price of a purchase option or penalties for
terminating the lease, if the Company is reasonably certain to exercise those purchase or
termination options. Lease liabilities are recognized net of lease incentives receivable. The
lease payments are discounted using the interest rate implicit in the lease, or, if that rate
cannot be readily determined, the lessee’s incremental borrowing rate. Subsequent to initial
measurement, the Company measures lease liabilities at amortized cost using the effective
interest rate method.
Lease terms applied are the contractual non-cancellable periods of the lease, plus periods
covered by renewal options or termination options, if the Company is reasonably certain to
exercise those options. Lease liabilities are remeasured when there is a change in lease
term, a change in the assessment of an option to purchase the leased asset, a change in
expected residual value guarantee, or a change in future lease payments resulting from a
change in an index or a rate used to determine those payments.
Right-of-use assets are measured at cost less accumulated depreciation and accumulated
impairment losses. Cost includes the amount of the initial measurement of the related lease
liability, plus any lease payments made at or before the commencement date and any initial
direct costs and future restoration costs, less any lease incentives received. Right-of-use
assets are depreciated on a straight-line basis from the date that the underlying asset is
available for use. Depreciation is recorded over the shorter of the lease term and the useful
life of the underlying asset, unless the lease transfers ownership of the underlying asset to
the lessee by the end of the lease term, in which case depreciation is recorded over the
useful life of the underlying asset.
Lease payments for assets that are exempt through the short-term exemption and variable
payments not based on an index or rate continue to be recognized in selling, general and
administrative expenses.

ROOTS CORPORATION
Notes to Interim Condensed Consolidated Financial Statements (continued)
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
11
Subleases
When the Company enters into sublease arrangements as an intermediate lessor, it
assesses whether the sublease is classified as a finance sublease or an operating sublease
by reference to the corresponding right-of-use asset arising from the head lease, rather than
by reference to the underlying asset. A sublease is a finance sublease if substantially all the
risks and rewards incidental to ownership of the related right-of-use asset on the head lease
have been transferred to the sub-lessee.
Use of estimates and judgments in lease accounting
The Company has applied judgment to determine the lease term for some lease contracts
that include renewal or termination options. The assessment of whether the Company is
reasonably certain to exercise such options impacts the lease term, which significantly affects
the amount of lease liabilities and right-of-use assets recognized.
The Company is required to estimate the incremental borrowing rates used to discount lease
liabilities if the interest rate implicit in the lease is not readily determined. In determining the
incremental borrowing rates, management considers the Company’s creditworthiness, the
security, the term, the value of the underlying leased asset, and the economic operational
environment of the leased asset. The incremental borrowing rates are subject to change
mainly due to macroeconomic changes.
(b) New standards and interpretations not yet adopted:
The IASB has not issued any significant new accounting standards that impact the Company
since the standards described in the most recent annual financial statements for the year
ended February 2, 2019. The Company continues to monitor future IFRS changes proposed
by the IASB that may have an impact on the Company’s results.

ROOTS CORPORATION
Notes to Interim Condensed Consolidated Financial Statements (continued)
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
12
3. Operating segments
The Company has two reportable operating segments:
(a) The “Direct-to-Consumer” segment comprises sales through corporate retail stores and our
eCommerce platform, Roots.com; and
(b) The “Partners and Other” segment consists primarily of the wholesale of Roots-branded
products to our international operating partner and the royalties earned on the retail sales of
Roots-branded products by our partner. The Partners and Other segment also consists of
royalties earned through the licensing of our brand to select manufacturing partners, the
wholesale of Roots-branded products to select retail partners, and the sale of custom Roots-
branded products to select business clients.
The Company defines an operating segment on the same basis that the Chief Operating Decision
Maker (the “CODM”) uses to evaluate performance internally and to allocate resources. The Company
has determined that the President and Chief Executive Officer is its CODM. The accounting policies of
the reportable segments are the same as those described in Note 2. The Company measures each
reportable operating segment’s performance based on sales and gross profit, which is the profit metric
used by the CODM for assessing performance of each segment. The Company does not report total
assets or total liabilities based on its operating segments.
Information for each reportable operating segment, as presented to the CODM, is included below:
13 week period ended 13 week period ended
November 2, 2019 November 3, 2018
Direct-to- Partners Direct-to- Partners
Consumer and Other Total Consumer and Other Total
Sales $ 73,949 $ 12,428 $ 86,377 $ 70,727 $ 16,252 $ 86,979
Cost of goods sold 30,415 8,583 38,998 26,892 12,157 39,049
Gross profit 43,534 3,845 47,379 43,835 4,095 47,930
Selling, general and
administrative expenses1 40,697 42,465
Income before interest expense
and income taxes expense (recovery) 6,682 5,465
Interest expense1 4,159 1,393
Income before income taxes $ 2,523 $ 4,072
1These unallocated items represent expenses which management does not report when analyzing segment underlying
performance.

ROOTS CORPORATION
Notes to Interim Condensed Consolidated Financial Statements (continued)
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
13
39 week period ended 39 week period ended
November 2, 2019 November 3, 2018
Direct-to- Partners Direct-to- Partners
Consumer and Other Total Consumer and Other Total
Sales $ 168,712 $ 33,700 $ 202,412 $ 163,178 $ 35,027 $ 198,205
Cost of goods sold 72,582 22,931 95,513 63,936 24,124 88,060
Gross profit 96,130 10,769 106,899 99,242 10,903 110,145
Selling, general and
administrative expenses1 118,863 115,014
Loss before interest expense
and income taxes expenses (recovery) (11,964) (4,869)
Interest expense1 11,605 3,736
Loss before income taxes $ (23,569) $ (8,605)
1These unallocated items represent expenses which management does not report when analyzing segment underlying
performance.

ROOTS CORPORATION
Notes to Interim Condensed Consolidated Financial Statements (continued)
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
14
4. Financial instruments
The Company has determined that the carrying amount of its short-term financial assets and financial
liabilities approximates its fair value due to the short-term maturity of these financial instruments.
The fair value of long-term debt approximates its carrying value, as determined based on Level 2 of the
fair value hierarchy.
The fair value of forward contracts is determined using a valuation technique that employs the use of
market observable inputs and is based on the differences between the contract rate and the market
rates as at the period-end date, taking into consideration discounting to reflect the time value of money.
This has been determined using Level 2 of the fair value hierarchy.
There were no transfers between levels of the fair value hierarchy for the 13 and 39 week periods
ended November 2, 2019 and November 3, 2018.
The Company enters into forward contracts, from time to time, to hedge its exposure for a portion of
purchases denominated in U.S. dollars. As at November 2, 2019, the Company has outstanding
forward contracts to buy U.S. $44,485 (February 2, 2019 – U.S. $42,460) at an average forward rate
of 1.33 (February 2, 2019 – 1.30).
For the 13 week periods ended November 2, 2019 and November 3, 2018, the effective portion of
changes in the fair value of all matured forward contracts and outstanding forward contracts resulted in
a loss of $398 (net of tax – $292) and a gain of $419 (net of tax – $307), respectively, which were
recorded in other comprehensive income (loss). For the 39 week periods ended November 2, 2019 and
November 3, 2018, the effective portion of changes in the fair value of all matured forward contracts
and outstanding forward contracts resulted in a gain of $112 (net of tax – $82) and a gain of $3,517
(net of tax – $2,580), respectively, which were recorded in other comprehensive income.

ROOTS CORPORATION
Notes to Interim Condensed Consolidated Financial Statements (continued)
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
15
5. Leases
The following table reconciles the change in right-of-use assets for the 39 week period ended
November 2, 2019:
Accumulated Net Book
Cost Depreciation Value
Balance, February 3, 2019 $ 137,294 $ – $ 137,294
Additions 14,117 – 14,117
Adjustments 8,827 – 8,827
Tenant allowances (6,277) – (6,277)
Depreciation – (18,372) (18,372)
Balance, November 2, 2019 $ 153,961 $ (18,372) $ 135,589
The following table reconciles the change in lease liabilities for the 39 week period ended November
2, 2019:
November 2, 2019
(39 weeks)
Balance, February 3, 2019 $ 149,920
Additions 14,117
Adjustments 8,370
Tenant allowances (6,277)
Accretion of lease liabilities 6,787
Repayment of interest and principal on lease liabilities, net of tenant allowance (19,570)
Balance, November 2, 2019 $ 153,347
Recorded in the interim condensed consolidated statement of financial position as follows:
Current portion of lease liabilities $ 29,566
Long-term portion of lease liabilities 123,781
$ 153,347

ROOTS CORPORATION
Notes to Interim Condensed Consolidated Financial Statements (continued)
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
16
6. Long-term debt
The Company has a secured credit agreement (“Credit Agreement”) with a syndicate of lenders
consisting of a term loan (“Term Credit Facility”) and a revolving credit loan (“Revolving Credit Facility”
and, together with the Term Credit Facility, the “Credit Facilities”).
On April 23, 2019, the Company amended the Credit Agreement to increase the availability under the
Revolving Credit Facility to an amount not exceeding $75,000, less the aggregate swing line loan of
$10,000. The amendment also adjusted certain definitions and limits of certain financial covenants to
better reflect the initiatives and seasonality of the Company’s business. The Company incurred $163
of costs associated with the amendment, which have been recorded as debt financing costs within long-
term debt and will be recognized in interest expense over the remaining term of the loan. The Credit
Facilities mature on September 6, 2022.
The following table reconciles the changes in cash flows from financing activities for long-term debt for
the 39 week periods ended November 2, 2019 and November 3, 2018:
November 2, 2019 November 3, 2018
(39 weeks) (39 weeks)
Long-term debt, beginning of period $ 85,015 $ 84,465
Long-term debt issuances under Revolving Credit Facility 50,000 40,000
Long-term debt repayments of Term Credit Facility (3,737) (3,737)
Long-term debt financing costs (163) (66)
Total cash flow from long-term debt financing activities 46,100 36,197
Amortization of long-term debt financing costs 480 444
Total non-cash long-term debt activity 480 444
Total long-term debt, end of period $ 131,595 $ 121,106
Recorded in the interim condensed consolidated statement of financial position as follows:
Current portion of long-term debt $ 4,984 $ 4,984
Long-term portion of long-term debt 126,611 116,122
$ 131,595 $ 121,106

ROOTS CORPORATION
Notes to Interim Condensed Consolidated Financial Statements (continued)
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
17
7. Share capital
The Company’s authorized share capital consists of an unlimited number of Shares and an unlimited
number of preferred shares, issuable in series. The holders of Shares are entitled to receive
distributions as declared from time to time by the Board. Shareholders are entitled to one vote per
Share at shareholder meetings of the Company.
Preferred shares of each series, if and when issued, will, with respect to the payment of dividends, be
entitled to preference over Shares. Except as provided in any special rights or restrictions attaching to
any series of preferred shares issued from time to time, the holders of preferred shares will not be
entitled to vote at any shareholder meetings of the Company.
There were no dividends or distributions declared during the 39 week periods ended November 2, 2019
and November 3, 2018.
During the 39 week period ended November 2, 2019, 4,220 Shares were issued from treasury as a
result of the exercise of 4,220 restricted share units (“RSUs”) granted under the Omnibus Plan (see
Note 9). During the 39 week period ended November 3, 2018, 139,731 Shares were issued from
treasury as a result of the exercise of 139,731 stock options granted under the Legacy Equity Incentive
Plan (see Note 9).
As at November 2, 2019, there were 42,124,451 Shares and no preferred shares issued and
outstanding (February 2, 2019 – 42,120,231). All issued Shares are fully paid.

ROOTS CORPORATION
Notes to Interim Condensed Consolidated Financial Statements (continued)
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
18
8. Earnings (loss) per share
The Company presents basic and diluted earnings (loss) per share data for its Shares. Basic earnings
(loss) per share is calculated by dividing net earnings (loss) by the weighted average number of Shares
outstanding during the period. Diluted earnings (loss) per share is determined by adjusting net income
(loss) and the weighted average number of Shares outstanding, for the effects of all dilutive potential
Shares, which comprise share-based compensation granted to employees and directors.
November 2, 2019 November 3, 2018 November 2, 2019 November 3, 2018
(13 weeks) (13 weeks) (39 weeks) (39 weeks)
Weighted average Shares outstanding 42,124,451 42,120,231 42,122,466 42,037,098
Impact of share-based compensation 233,152 396,165 – –
Diluted weighted average Shares outstanding 42,357,603 42,516,396 42,122,466 42,037,098
November 2, 2019 November 3, 2018 November 2, 2019 November 3, 2018
(13 weeks) (13 weeks) (39 weeks) (39 weeks)
Net income (loss) $ 1,969 $ 2,795 $ (17,452) $ (6,876)
Basic earnings (loss) per share $ 0.05 $ 0.07 $ (0.41) $ (0.16)
Diluted earnings (loss) per share $ 0.05 $ 0.07 $ (0.41) $ (0.16)
For the 13 and 39 week periods ended November 2, 2019 and November 3, 2018, 968,297 and
1,850,841 performance-based stock options, respectively, were not included in the calculation of basic
or diluted earnings (loss) per share as the conditions required to convert these options to shares were
not met.
For the 13 week periods ended November 2, 2019 and November 3, 2018, 1,620,703 and 250,538
time-based options, respectively, were not included in the calculation of basic or diluted earnings per
share as they were anti-dilutive and/or not in the money.
For the 39 week periods ended November 2, 2019 and November 3, 2018, 1,620,703 and 1,412,424
time-based options, respectively, were not included in the calculation of basic or diluted loss per share
as they were anti-dilutive and/or not ‘in the money’.
For the 39 week periods ended November 2, 2019 and November 3, 2018, 233,152 and 59,766 RSUs,
respectively, were not included in the calculation of basic or diluted loss per share as they were anti-
dilutive.

ROOTS CORPORATION
Notes to Interim Condensed Consolidated Financial Statements (continued)
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
19
9. Share-based compensation
Under the various share-based compensation plans, the Company may grant stock options or other
security-based instruments to buy approximately 4.7 million Shares. As at November 2, 2019,
approximately 2.6 million stock options, 0.2 million RSUs, and 0.2 million DSU’s were granted and
outstanding.
The following is a summary of the Company’s stock option activity:
For the 13 week period Legacy Equity Legacy Employee Omnibus
ended November 2, 2019 Incentive Plan Option Plan Plan Total
Weighted Weighted Weighted Weighted
average average average average
Number of exercise Number of exercise Number of exercise Number of exercise
options price options price options price options price
Outstanding options,
beginning of period 2,037,764 $ 4.72 465,858 $ 6.26 1,156,885 $ 6.72 3,660,507 $ 5.55
Forfeited (805,177) 4.78 (14,280) 6.26 (252,050) 7.92 (1,071,507) 5.54
Outstanding options,
end of period 1,232,587 $ 4.68 451,578 $ 6.26 904,835 $ 6.39 2,589,000 $ 5.55
Exercisable options,
end of period 150,601 $ 4.76 303,439 $ 6.26 39,522 $ 11.92 493,562 $ 6.26
For the 13 week period Legacy Equity Legacy Employee Omnibus
ended November 3, 2018 Incentive Plan Option Plan Plan Total
Weighted Weighted Weighted Weighted
average average average average
Number of exercise Number of exercise Number of exercise Number of exercise
options price options price options price options price
Outstanding options,
beginning of period 2,375,884 $ 4.78 465,858 $ 6.26 420,202 $ 12.13 3,261,944 $ 5.94
Granted – – – – 8,949 7.06 8,949 7.06
Forfeited – – – – (7,628) 12.99 (7,628) 12.99
Outstanding options,
end of period 2,375,884 $ 4.78 465,858 $ 6.26 421,523 $ 12.01 3,263,265 $ 5.93
Exercisable options,
end of period 185,767 $ 4.82 155,288 $ 6.26 28,962 $ 12.00 370,017 $ 5.99
For the 39 week period Legacy Equity Legacy Employee Omnibus
ended November 2, 2019 Incentive Plan Option Plan Plan Total
Weighted Weighted Weighted Weighted
average average average average
Number of exercise Number of exercise Number of exercise Number of exercise
options price options price options price options price
Outstanding options,
beginning of period 2,375,884 $ 4.78 465,858 $ 6.26 421,523 $ 12.01 3,263,265 $ 5.93
Granted – – – – 808,105 4.30 808,105 4.30
Forfeited (1,143,297) 4.89 (14,280) 6.26 (324,793) 8.47 (1,482,370) 5.69
Outstanding options,
end of period 1,232,587 $ 4.68 451,578 $ 6.26 904,835 $ 6.39 2,589,000 $ 5.55
Exercisable options,
end of period 150,601 $ 4.76 303,439 $ 6.26 39,522 $ 11.92 493,562 $ 6.26

ROOTS CORPORATION
Notes to Interim Condensed Consolidated Financial Statements (continued)
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
20
For the 39 week period Legacy Equity Legacy Employee Omnibus
ended November 3, 2018 Incentive Plan Option Plan Plan Total
Weighted Weighted Weighted Weighted
average average average average
Number of exercise Number of exercise Number of exercise Number of exercise
options price options price options price options price
Outstanding options,
beginning of period 2,515,615 $ 4.77 497,986 $ 6.26 300,649 $ 11.87 3,314,250 $ 5.64
Granted – – – – 131,282 12.39 131,282 12.39
Exercised (139,731) 4.67 – – – – (139,731) 4.67
Forfeited – – (32,128) 6.26 (10,408) 12.93 (42,536) 7.89
Outstanding options,
end of period 2,375,884 $ 4.78 465,858 $ 6.26 421,523 $ 12.01 3,263,265 $ 5.93
Exercisable options,
end of period 185,767 $ 4.82 155,288 $ 6.26 28,962 $ 12.00 370,017 $ 5.99
The fair value of stock options granted during the 13 and 39 week periods ended November 2, 2019
was $nil (November 3, 2018 – $23) and $1,211 (November 3, 2018 – $517), respectively.
The fair value of the stock options issued in the period are estimated at the date of grant using the
Black Scholes model and using the following assumptions:
November 2, 2019 November 3, 2018
(39 weeks) (39 weeks)
Expected volatility 33.0% - 34.1% 27.0% - 32.5%
Share price at grant date $3.28 - $4.51 $7.06 - $13.07
Exercise price $3.28 - $4.51 $7.06 - $13.07
Risk-free interest rate 1.34% - 1.60% 2.21% - 2.27%
Expected term 5.5 years - 6.5 years 6 years - 6.5 years
Fair value per option $1.10 - $1.63 $2.52 - $4.38
The computation of expected volatility was based on the historical volatility of comparable companies
from a representative peer group selected based on industry. The risk-free interest rate is based on
Government of Canada bond yields with maturities that coincide with the exercise period and terms of
the grant. The expected life estimate was determined by management based on a number of factors
including vesting terms, exercise behaviour and the contractual term of the options.

ROOTS CORPORATION
Notes to Interim Condensed Consolidated Financial Statements (continued)
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
21
The following is a summary of the Company’s RSU and deferred share unit (“DSU”) activity:
For the 13 week period Legacy Equity Omnibus DSU
ended November 2, 2019 Incentive Plan Plan Plan Total
Number of Number of Number of Number of Number of
RSUs RSUs DSUs RSUs DSUs
Units, beginning of period 15,985 273,187 118,928 289,172 118,928
Granted – – 57,225 – 57,225
Forfeited – (56,020) – (56,020) –
Units, end of period 15,985 217,167 176,153 233,152 176,153
For the 13 week period Legacy Equity Omnibus DSU
ended November 3, 2018 Incentive Plan Plan Plan Total
Number of Number of Number of Number of Number of
RSUs RSUs DSUs RSUs DSUs
Units, beginning of period 15,985 42,939 15,005 58,924 15,005
Granted – 3,257 19,232 3,257 19,232
Forfeited – (2,415) – (2,415) –
Units, end of period 15,985 43,781 34,237 59,766 34,237
For the 39 week period Legacy Equity Omnibus DSU
Ended November 2, 2019 Incentive Plan Plan Plan Total
Number of Number of Number of Number of Number of
RSUs RSUs DSUs RSUs DSUs
Units, beginning of period 15,985 43,087 34,237 59,072 34,237
Granted – 243,313 141,916 243,313 141,916
Exercised – (4,220) – (4,220) –
Forfeited – (65,013) – (65,013) –
Units, end of period 15,985 217,167 176,153 233,152 176,153
For the 39 week period Legacy Equity Omnibus DSU
ended November 3, 2018 Incentive Plan Plan Plan Total
Number of Number of Number of Number of Number of
RSUs RSUs DSUs RSUs DSUs
Units, beginning of period 15,985 – – 15,985 –
Granted – 47,296 34,237 47,296 34,237
Forfeited – (3,515) – (3,515) –
Units, end of period 15,985 43,781 34,237 59,766 34,237
The fair value of RSUs granted during the 13 and 39 week periods ended November 2, 2019 were $nil
(November 3, 2018 – $23) and $1,068 (November 3, 2018 – $581), respectively. There were 15,985
RSUs vested as at November 2, 2019 (November 3, 2018 – 15,985).
The fair value of DSUs granted during the 13 and 39 week periods ended November 2, 2019 were $117
(November 3, 2018 – $117) and $469 (November 3, 2018 – $291), respectively.
The fair values of RSUs and DSUs granted are calculated based on the closing price of a Share on the
TSX on the last trading date immediately prior to the date of grant.

ROOTS CORPORATION
Notes to Interim Condensed Consolidated Financial Statements (continued)
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
22
The grant date fair value of share-based compensation awards granted to employees is recognized as
share-based compensation expense, recorded in selling, general and administrative expenses with a
corresponding increase to contributed surplus, over the period that the employees unconditionally
become entitled to the awards. The following is a summary of the Company’s share-based
compensation expense:
November 2, 2019 November 3, 2018 November 2, 2019 November 3, 2018
(13 weeks) (13 weeks) (39 weeks) (39 weeks)
Legacy Equity Incentive Plan $ (492) $ 219 $ (434) $ 644
Legacy Employee Option Plan 45 221 297 679
Omnibus Plan (21) 230 664 662
Total share-based compensation expense $ (468) $ 670 $ 527 $ 1,985
10. Financial risk management
The Company has exposure to the following risks from its use of financial instruments:
(a) Liquidity risk:
Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations
associated with its financial liabilities. The Company prepares cash flow forecasts to ensure
it has sufficient funds through operations and access to debt facilities to meet its financial
obligations.
The Company maintains credit facilities, as described in Note 6, allowing it to access funds
for operations.
The contractual maturities of the Company’s current and long-term financial liabilities as at
November 2, 2019, excluding interest payments, are as follows:
Remaining to maturity
Carrying Contractual Under 1 - 3 3 - 5 More than
amount cash flows 1 year years years 5 years
Non-derivative financial
liabilities
Bank indebtedness $ 1,809 $ 1,809 $ – $ – $ 1,809 $ –
Accounts payable and
accrued liabilities 34,628 34,628 34,628 – – –
Long-term debt 131,595 133,462 4,984 128,478 – –
Lease liabilities 153,347 194,509 30,655 54,915 46,334 62,605
$ 321,379 $ 364,408 $ 70,267 $ 183,393 $ 48,143 $ 62,605

ROOTS CORPORATION
Notes to Interim Condensed Consolidated Financial Statements (continued)
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
23
(b) Currency risk:
The Company is exposed to foreign exchange risk on foreign currency denominated financial
assets and liabilities. A five percentage point change in the Canadian dollar against the U.S.
dollar, assuming that all other variables remain constant, would have changed loss before
income taxes for the 39 week period ended November 2, 2019 by $285 (39 week period
ended November 3, 2018 – $211), as a result of the revaluation on these financial assets
and liabilities.
The Company purchases a significant amount of its merchandise in U.S. dollars and enters
into forward contracts to reduce the foreign exchange risk with respect to these U.S. dollar
denominated purchases. The Company has performed a sensitivity analysis on its forward
contracts (designated as cash flow hedges), to determine how a change in the U.S. dollar
exchange rate would impact other comprehensive income. A five percentage point change
in the Canadian dollar against the U.S. dollar, assuming that all other variables remain
constant, would have changed other comprehensive income for the 39 week period ended
November 2, 2019 by $2,902 (39 week period ended November 3, 2018 – $2,878), as a
result of the revaluation on the Company’s outstanding forward contracts.
(c) Interest rate risk:
Market fluctuations in interest rates impact the Company’s earnings with respect to cash
borrowings under the Credit Facilities. A one percentage point change in the applicable
interest rate would have changed loss before income taxes for the 39 week period ended
November 2, 2019 by $862 (39 week period ended November 3, 2018 – $793).
(d) Credit risk:
Credit risk is the risk of an unexpected loss if a customer or counterparty to a financial
instrument fails to meet its contractual obligations. The Company’s financial instruments that
are exposed to concentrations of credit risk are primarily cash, loans receivable, lease
receivable, and accounts receivable. The Company limits its exposure to credit risk with
respect to cash by dealing primarily with large Canadian and U.S. financial institutions.
The Company’s accounts receivable consists primarily of receivables from business partners
in the Partners and Other operating segment, which are settled in the following fiscal quarter.

ROOTS CORPORATION
Notes to Interim Condensed Consolidated Financial Statements (continued)
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
24
As at November 2, 2019, the Company’s maximum exposure to credit risk for these financial
instruments was as follows:
Loan receivable $ 562
Lease receivable 1,590
Accounts receivable, excluding allowance for doubtful accounts 7,824
$ 9,976
(e) Capital management:
The Company manages its capital and capital structure with the objective of ensuring that
sufficient liquidity is available to support its financial obligations and to execute its strategic
plans. The Company considers 12-month EBITDA as a measure of its ability to service its debt
and meet other financial obligations as they become due.
The Company has financial and non-financial covenants under the Credit Facilities which allow
for certain adjustments to EBITDA (“Adjusted EBITDA”) for purposes of compliance with those
covenants. The key financial covenant includes a consolidated debt to Adjusted EBITDA ratio,
total debt to Adjusted EBITDA ratio, and fixed charge coverage ratio. As at November 2, 2019,
the Company was in compliance with its covenants under the Credit Facilities.

ROOTS CORPORATION
Notes to Interim Condensed Consolidated Financial Statements (continued)
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
25
11. Income taxes
Income taxes expense for the 13 week period ended November 2, 2019 was $554 (November 3, 2018
– $1,277), resulting in an effective income taxes expense rate for the 13 week period ended November
2, 2019 of 22.0% (November 3, 2018 – 31.4%). Income taxes recovery for the 39 week period ended
November 2, 2019 $(6,117) (November 3, 2018 – $(1,729)), resulting in an effective income taxes
recovery rate for the 39 week period ended November 2, 2019 of 26.0% (November 3, 2018 – 20.1%).
The decrease in the effective tax rate for the 13 week period, and the increase in the effective tax
recovery rate for the 39 week period ended November 2, 2019, as compared to the 13 and 39 week
periods ended November 3, 2018, respectively, were primarily attributable to lower non-deductible
share-based compensation expenses, as a percentage of total net income (loss) before income taxes,
incurred in the 13 and 39 week periods ended November 2, 2019.
12. Related party transactions
The Company’s related parties include key management personnel and key shareholders of the
Company, including other entities under common control. Investment funds managed by Searchlight
Capital Partners, L.P. (“Searchlight”) beneficially own approximately 48.7% of the total issued and
outstanding Shares and shareholders of a company formerly known as Roots Canada Ltd. through
their wholly-owned entities (the “Founders”) beneficially own approximately 12% of the total issued and
outstanding Shares. All transactions as described in the table below are in the normal course of
business and have been accounted for at their exchange value.
The Company incurred the following costs in connection with transactions entered into with its principal
shareholders:
November 2, 2019 November 3, 2018 November 2, 2019 November 3, 2018
(13 weeks) (13 weeks) (39 weeks) (39 weeks)
Rent(1) $ 117 $ 198 $ 545 $ 595
(1) The Company leases the building for its manufacturing facility and, until August 2019, leased the building for its
previous distribution centre, from companies that are under common control of the Founders. Figures include rent
expenses as they relate to the lease of these properties.
In addition to the transactions noted above, Meghan Roach, an employee of Searchlight, was seconded
to the Company to act as Interim CFO at no cost to the Company, beginning August 6, 2019.

ROOTS CORPORATION
Notes to Interim Condensed Consolidated Financial Statements (continued)
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
26
In February 2016, a former member of the Company’s executive team purchased 214,193 Shares from
Searchlight at a price of $4.67 per Share. The purchase was paid for using $500 in cash and a $500
loan from the Company. The $500 loan from the Company is to be repaid at the earlier of six years
from the loan date and upon a liquidity sale of the Company. Interest accrues at a rate of 4% per annum
and will be payable at the start of each calendar year following the date of the loan. Unpaid interest
may be deemed paid by increasing the principal amount outstanding. As at November 2, 2019, the
outstanding balance on the loan was $562 (February 2, 2019 – $562). The officer resigned from the
Company effective August 9, 2019.