Roots CEO Meghan Roach is optimistic about the Canadian clothing retailer’s financial situation, despite reporting mounting losses.

On Tuesday, Roots reported losses of $5.3 million for its latest quarter, compared to a $3.2-million loss a year ago. That came as sales climbed and the company was able to shrink its excess inventory.

“I think we’re really in a good place from a liquidity perspective, we’ve got really healthy debt levels, we’ve got really low net debt,” Roach told BNN Bloomberg in a television interview.

“Overall, I’m pretty happy with how the business performed from a sales perspective.”

Overall, Roach said the company had a harder time selling its fleece bottoms in the quarter, but added that sales were offset by dresses, activewear and its “Beaver Canoe” brand, which it launched last year.  

To hear the full conversation with Roach, click on the video at the top of this article.