Reitmans sales continue to fall in Q2
Reitmans announced another quarter of tumbling sales on Tuesday, while reporting a net loss for the three months ended August 3, 2019.
The fashion group, and owner of brands Addition Elle and Thyme Maternity, said sales for the second quarter 2020 were $232.8 million, as compared with $248.8 million reported during the same period last year, due to a net reduction of 45 stores and unseasonable weather conditions.
Not even e-commerce sales, which has been a bright spot for the fashion group, were enough to drive momentum in comparable sales. Instead, comps dropped 1.9 percent, as store traffic was down 3.2 percent.
Gross profit for the quarter decreased $14.9 million or 10.8 percent, to $122.7 million as compared with $137.6 million for the second quarter of 2019.
Likewise, net loss was $0.1 million ($0.00 basic and diluted loss per share) as compared with $10 million net earnings ($0.16 basic and diluted earnings per share) for the second quarter of 2019.
Following an unimpressive first quarter, net loss year to date was $12.7 million ($0.20 basic and diluted loss per share) as compared with $6.8 million net earnings ($0.11 basic and diluted earnings per share) for the year to date fiscal 2019.
What’s more, the third quarter is equally off to a rocky start with August sales down 7.1 percent and comparable sales down 3.6 percent.
Looking ahead, the company said that it’s 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 591 stores consisting of 258 Reitmans, 114 Penningtons, 80 Addition Elle, 81 RW & CO. and 58 Thyme Maternity.
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