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The latest update is out from Reitmans (Canada) ( (TSE:RET) ).
Reitmans (Canada) Limited reported a 3.8% increase in third-quarter net revenues to $194.9 million, driven by a 2.1% rise in comparable sales and an additional store, while gross profit rose 1.9% to $109.6 million, albeit with a 110-basis-point margin compression due to higher promotional activity and foreign-exchange pressures. Adjusted EBITDA jumped 47% to $5.6 million, reflecting improved operating performance, but net earnings declined to $0.9 million from $2.1 million a year earlier, as restructuring and transformation-related costs of $1.4 million weighed on the bottom line; management emphasized progress under its five-year ‘Designed for the Future’ strategy, highlighted by the re-opening of the RW&CO. Saint-Bruno flagship and several new store openings, while the company maintains a strong cash position, no significant long-term debt aside from leases, and undrawn bank facilities, underscoring financial flexibility as it pursues a disciplined store investment and modernization program.
The most recent analyst rating on (TSE:RET) stock is a Hold with a C$2.50 price target. To see the full list of analyst forecasts on Reitmans (Canada) stock, see the TSE:RET Stock Forecast page.
Spark’s Take on TSE:RET Stock
According to Spark, TipRanks’ AI Analyst, TSE:RET is a Neutral.
Reitmans (Canada) scores moderately due to its stable financials and positive technical indicators. However, the high P/E ratio suggests overvaluation, and low profitability remains a concern. The corporate event of launching a flagship store is a positive strategic move, potentially enhancing future growth prospects.
To see Spark’s full report on TSE:RET stock, click here.
More about Reitmans (Canada)
Reitmans (Canada) Limited is one of Canada’s leading specialty apparel retailers, operating banners including RW&CO., Reitmans and PENN. The company focuses on women’s and lifestyle fashion, with a nationwide brick-and-mortar store network complemented by evolving in-store experiences aimed at aligning with contemporary consumer values and lifestyles.
Average Trading Volume: 8,024
Technical Sentiment Signal: Buy
Current Market Cap: C$109.6M
See more data about RET stock on TipRanks’ Stock Analysis page.