Reitmans (Canada) Limited Reports First Quarter Financial Results
MONTREAL, June 17, 2025 /CNW/ - Reitmans (Canada) Limited ("RCL" or the "Company") (TSXV:RET) (TSXV:RET), one of Canada's leading specialty apparel retailers, today reported its financial results for the first quarter ended May 3, 2025. Unless otherwise indicated, all comparisons are to the first quarter ended May 4, 2024. All dollar amounts are in Canadian currency.
Highlights
Net revenues decreased 4.1% to $158.9 million, primarily due to severe winter weather in the month of February and economic uncertainty.
Comparable sales1 decreased 4.5%.
Gross profit % was down 100 basis points to 55.7%.
Adjusted EBITDA1 was negative $10.6 million.
Net loss was $10.0 million, or $0.20 per share.
"While our e-commerce revenue grew in Q1, it was not enough to offset lower in-store traffic resulting from near-record snowfall accumulations in some regions during February," said Andrea Limbardi, President and CEO of RCL. "We saw improvement once the weather cleared; however, consumers were more price-conscious amid ongoing economic uncertainty. We proactively moved our merchandise with selective and strategic promotional activity, ending the quarter with healthy inventory levels. However, these actions resulted in a year-over-year gross profit impact. I am pleased with the performance of our Reitmans brand, which performed well in the quarter, responding to customers' concerns over the economy with its hallmark of great styles and quality at accessible price points."
"Our disappointing financial results underscore the importance of implementing the five-year strategic plan we announced in April. This strategy is designed to drive long-term profitable growth and ultimately make our business more resilient. As part of our ongoing efforts to optimize our store fleet, we opened three new Reitmans stores, one RW&CO store, and two PENN stores that were relocations during the quarter. Meanwhile, under our strategy to fuel growth with modernization, we moved forward with the first phase of our digital strategic roadmap. Reflecting our commitment to a seamless customer journey across all our touch points, this first phase will include newly designed front-end e-commerce storefronts for all three brands and migrating to ShopifyTM. We expect the migration and launch of our enhanced e-commerce offering to be completed this fiscal year."
1
This is a Non-GAAP Financial Measure. See "Non-GAAP Financial Measures & Supplementary Financial Measures" for reconciliation of these measures.
Selected Financial Information
(in millions of dollars, except for gross profit % and earnings per share) (unaudited)
First quarter
2026
2025
Change
Net revenues
$158.9
$165.7
(4.1 %)
Gross profit
$88.5
$93.9
(5.8 %)
Gross profit %
55.7 %
56.7 %
(100 bps)
Selling, general and administrative expenses
$99.1
$95.1
4.2 %
Net loss
($10.0)
($1.5)
n/a
Adjusted EBITDA1
($10.6)
$0.9
n/a
Loss per share:
Basic
($0.20)
($0.03)
n/a
Diluted
($0.20)
($0.03)
n/a
1
This is a Non-GAAP Financial Measure. See "Non-GAAP Financial Measures & Supplementary Financial Measures" for reconciliations of these measures.
On May 3, 2025, RCL had working capital1 of $134.8 million, including cash of $85.4 million compared to working capital of $165.7 million, including cash of $158.1 million as at February 1, 2025 and working capital of $153.4 million, including cash of $98.9 million as at May 4, 2024. At the end of the first quarter, RCL had no long-term debt other than lease liabilities and no amounts were drawn under the Company's bank credit facilities.
First Quarter Overview
Net revenues decreased by 4.1%, to $158.9 million. The decrease was attributable to adverse weather conditions in the month of February and consumers being more price conscious as a result of economic uncertainty. Comparable sales1 decreased 4.5%, primarily due to lower store traffic and customers migrating to discounted merchandise.
Gross profit % decreased by 100 basis points, to 55.7% or $88.5 million, mainly due to a lower proportion of regular priced sales.
