Reitmans sales fall short in Q3, bets on Addition Elle banner

Following a promising first and second quarter, Reitmans suffered a net loss in its third quarter and saw sales tumble 1.3 percent.
 
Ashley Graham for Addition Elle - Facebook: Addition Elle

The Canadian retailer reported sales for the three months ended October 28, 2017 of $242.4 million as compared to $245.6 million reported in the same period last year. Store sales fell 1.9 percent, while e-commerce sales and same store sales increased 29.7 percent and 0.8 percent respectively.
 
Net loss for the three months was $16.8 million, as compared with net earnings of $7.6 million.
 
Year-to-date the company is still in the red with gross profit down 2.2 percent at $387.8 million as compared with $396.6 million.
 
Still, the company is optimistic of its Addition Elle banner.
 
“The company continues to believe that Addition Elle is a premium brand with excellent digital capabilities, a strong online presence with the plus-size consumer, highly recognizable celebrity collaborations and strategies in place with the potential to generate long-term profitable growth for the Company,” Reitmans said, in a news statement.
 
In November, the company appointed Jonathon Fitzgerald as Group President for the Company's plus-size women apparel brands including Addition Elle and Penningtons.
 
Earlier this year, Addition Elle announced big plans to target the US market including the launch of their localized US website in September.
 
What’s more, sales for the month of November were promising with sales up 0.7 percent.
 
The company currently operates 652 stores consisting of 276 Reitmans, 122 Penningtons, 93 Addition Elle, 84 RW & CO., 61 Thyme Maternity and 16 Hyba stores.

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