MONTREAL, Sept. 18, 2025 /CNW/ – Reitmans (Canada) Limited (“RCL” or the “Company”) (TSXV:RET) (TSXV:RET), one of Canada’s leading specialty apparel retailers, today reported its financial results for its second quarter of fiscal 2026. Unless otherwise indicated, all comparisons of results for the second quarter ended August 2, 2025 are to the second quarter ended August 3, 2024, and all comparisons of results for the year to date ended August 2, 2025 are to the year to date ended August 3, 2024. All dollar amounts are in Canadian currency.
Highlights
- Net revenues were $215.9 million, above last year, despite three fewer stores.
- Comparable sales1 decreased 1.3%.
- Gross profit margin decreased 220 basis points to 56.9%.
- Adjusted EBITDA1 was $21.4 million, $2 million below last year.
- Net earnings was $13.1 million, or $0.26 per share
“Sales in the second quarter were among the best in the last few years, despite three fewer stores and the closure of Thyme Maternity. We were especially pleased with Reitmans’ performance and the customer response to our Summer collection,” said Andrea Limbardi, President and CEO of RCL. “Customers remained price-conscious, and we strategically moved inventory through focused promotions, which impacted year-on-year gross profit. Adjusted EBITDA was primarily impacted by foreign exchange, as we benefitted from a currency gain last year. We continued to focus on improving SG&A, achieving a reduction in costs of over $2.7 million.”
“Looking ahead, we’re progressing on our five-year strategic plan, which includes driving brand growth through targeted investments in our retail footprint. In Q2, our renovated stores outperformed the rest of the fleet. In October, RW&CO will open its doors at an 8,000 sq. ft. flagship in Saint-Bruno, Québec, and unveil a bold new experience that reflects the brand’s evolving identity and focus.”
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1 This is a Non-GAAP Financial Measure. See “Non-GAAP Financial Measures & Supplementary Financial Measures” for reconciliation of these measures. |
Selected Financial Information
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(in millions of dollars, except for gross profit % and earnings per share) (unaudited) |
Second quarter |
Year to date fiscal |
|||||
|
2026 |
2025 |
Change |
2026 |
2025 |
Change |
||
|
Net revenues |
$215.9 |
$215.5 |
0.2 % |
$374.7 |
$381.3 |
(1.7 %) |
|
|
Gross profit |
$122.8 |
$127.3 |
(3.5 %) |
$211.2 |
$221.3 |
(4.6 %) |
|
|
Gross profit % |
56.9 % |
59.1 % |
(220 bps) |
56.4 % |
58.0 % |
(160 bps) |
|
|
Selling, general and administrative expenses |
$103.1 |
$105.8 |
(2.6 %) |
$202.2 |
$201.0 |
0.6 % |
|
|
Net earnings |
$13.1 |
$15.7 |
(16.6 %) |
$3.1 |
$14.2 |
(78.2 %) |
|
|
Adjusted EBITDA1 |
$21.4 |
$23.4 |
(8.5 %) |
$10.8 |
$24.2 |
(55.4 %) |
|
|
Earnings per share: |
|||||||
|
Basic |
$0.26 |
$0.32 |
(18.8 %) |
$0.06 |
$0.29 |
(79.3 %) |
|
|
Diluted |
$0.26 |
$0.32 |
(18.8 %) |
$0.06 |
$0.29 |
(79.3 %) |
|
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1 This is a Non-GAAP Financial Measure. See “Non-GAAP Financial Measures & Supplementary Financial Measures” for reconciliations of these measures. |
On August 2, 2025, RCL had working capital1 of $149.6 million, including cash of $125.3 million compared to working capital of $165.7 million, including cash of $158.1 million as at February 1, 2025, and working capital of $168.4 million, including cash of $124.0 million as at August 3, 2024. At the end of the second quarter, RCL had no significant long-term debt other than lease liabilities and no amounts were drawn under the Company’s bank credit facilities.
Second Quarter Overview
Net revenues were flat, at $215.9 million, despite three fewer stores and the closure of Thyme Maternity. Comparable sales1 were down 1.3% compared to last year despite stronger in-store traffic as customers continued to favour discounted merchandise.
Gross profit decreased by $4.5 million to $122.8 million, or 56.9% …