Reitmans Q3 2015 reports slight losses, company recovering from 68 store closures in 2014

By

Dani Greene

Published
Dec 7, 2015

Reitmans Canada Ltd. Reitmans (Canada) Ltd. announced that Q3 2015 saw increases in sales compared to Q3 2014, but a 1.2% decrease from 2014 in year-to-date sales. The company experienced increases in sales compared to Q3 2014, but a 1.2% decrease from 2014 in year-to-date sales. For the third quarter of this year, same store sales increasing by 7.6%, sales increasing by 0.8% and e-commerce sales almost doubling with an increase of 72.2% when all compared to Q3 2014 earnings.

Reitmans experienced a net loss of $0.3 million for the three months ending October 21, 2015, whereas Q3 2014 saw net earnings of $12.9 million. However, gross profit for Q3 2015 decreased 8.6% or by $12.9 million to $138.0 million. Reduced margins and a $4.3 million pre-tax loss resulting from changes in fair value of marketable securities were the primary culprits of net losses for Q3 2015. Weakness in the Canadian dollar compared to the U.S. dollar also negatively impacted earnings. Adjusted EBITA for Q3 2015 was slightly lower at $15.3 million, compared to $15.8 million for the same quarter in 2014.
 
For the first 9 months of 2015, Reitmans experienced a 1.2% decrease in sales, largely due to a net reduction of 68 stores. Same store sales increased 3.9% and e-commerce sales increased 77.7% when compared to the first three quarters of 2014. Gross profits also decreased by 6.1% from 2014. Adjusted EBITA for the first nine months in 2015 decreased to $34.9 million, $15.8 million less than Q1 through Q3 2014. Sales across all platforms increased during Nov 2015, most notably e-commerce increased 78% when compared to Nov 2014.

Reitmans Canada Ltd., founded in 1926 in Montreal, is a leading women’s apparel retailer. Reitmans Ltd. owns and operates several retailers including Reitmans, Penningtons, Addition Elle, RW & Co., Thyme Maternity, Hyba and Smart Set. The company currently operates a total of 775 retail outlets throughout Canada, including 332 Reitmans, 136 Penningtons and 107 Addition Elle. In addition, there are 21 Thyme Maternity shops in select Babies”R”Us throughout Canada.