Reitmans announces mixed first quarter results

By

Obi Anyanwu

Published
Jun 9, 2015

Reitmans Canada Limited last Tuesday announced its results for the three months ended on May 2nd 2015. The company sale's were at $201.7 million as compared with $206.5 million a year prior, or a decrease of 2.3%, with 52 fewer stores in operation. Same store sales increased by 3.0% with mall and power centre stores increasing 0.3% and e-commerce sales increasing 97.7%.

The increase in e-commerce sales increased the company’s gross margins to 59.5%, up from 58%.
 
Reitmans saw a net loss of $7.7 million compared to $3.4 million in the previous year. However, the adjusted EBITDA was $2.3 million compared to a loss of $4.1 million in the previous year, an increase of $6.4 million. The company reduced operating costs at a store level and at head office, which attributed to the improved adjusted EBITDA.

Sales for the month of May decreased 2.3%, same store sales increase 1.5%, and e-commerce sales increased 70.9%.
 
Reitmans currently operates 810 stores—337 Reitmans stores, 138 Penningtons, 107 Addition Elle, 78 RW & CO., 68 Thyme Maternity, 82 Smart Set, and 21 Thyme Maternity shop-in-shop boutiques in select Babies “R” Us locations in Canada.