Reitmans Q1 sales fall on store closures, losses widen
Reitmans sales were down in its first quarter reported on Monday, as the Canadian company continues to reduce its store count in order to adapt to the new retail environment.
The fashion retailer, and owner of brands Addition Elle and Thyme Maternity, said sales for the first quarter 2020 were $185.2 million, as compared with $207.6 million reported during the same period last year, due to a net reduction of 43 stores and unseasonable weather conditions.
E-commerce sales continued to be a bright spot for the fashion group, but it wasn’t enough to keep comparable sales from decreasing 5.7 percent. The decrease was primarily due to store traffic being down 5.4%.
For the three months ending May 4, net loss was $12.6 million ($0.20 basic and diluted loss per share) as compared with a net loss of $3.2 million ($0.05 basic and diluted loss per share) for the first quarter 2019.
Looking ahead, the company said its second quarter has not improved. Sales for the month of May decreased 13.3 percent, while comparable sales decreased 9.6 percent, with unseasonable weather conditions again noted as a factor.
Still, among its numerous store closures, Reitmans’ brand Addition Elle recently debuted a new store concept at its redesigned Carrefour Laval store.
The company said its continuing “to execute against a plan adapting to the new retail environment by reducing its store presence in select markets while enhancing its e-commerce capabilities.”
It currently operates 594 stores consisting of 259 Reitmans, 115 Penningtons, 80 Addition Elle, 82 RW & CO. and 58 Thyme Maternity.
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