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Reitmans (Canada) Class A (TSE:RET.A)
:RET.A
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Reitmans (Canada)
(OTC:RET.A)
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Rating:54Neutral
Price Target:
C$2.00
▲(0.00% Upside)
Reitmans (Canada) receives a score of 54, primarily driven by mixed financial performance and concerning valuation metrics. The company's strong gross profit margin is overshadowed by operational inefficiencies and negative net income. Technical indicators suggest a neutral outlook, while the lack of earnings call data and corporate events limits additional insights.
Positive Factors
Gross Profit Margin
A strong gross profit margin indicates effective cost management, allowing the company to maintain profitability despite challenges in other areas.
Balance Sheet Health
A stable balance sheet with a manageable debt-to-equity ratio suggests financial resilience, providing a buffer against economic fluctuations and supporting long-term growth.
Multi-Channel Retail Model
The multi-channel retail model enhances market reach and customer engagement, positioning the company to capitalize on both in-store and online shopping trends.
Negative Factors
Negative Net Income
Negative net income indicates profitability challenges, which can impact the company's ability to reinvest in growth and maintain competitive positioning.
Decline in Free Cash Flow
A decline in free cash flow growth suggests potential liquidity issues, limiting the company's ability to fund operations and invest in future opportunities.
Operational Inefficiencies
Operational inefficiencies, as evidenced by declining EBIT and EBITDA margins, can hinder profitability and reduce the company's competitive edge over time.
Reitmans (Canada) (RET.A) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$105.69M
Dividend YieldN/A
Average Volume (3M)29.04K
Price to Earnings (P/E)―
Beta (1Y)0.58
Revenue Growth-1.95%
EPS Growth-102.54%
CountryCA
Employees2,621
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)0.02
Shares Outstanding36,921,124
10 Day Avg. Volume42,055
30 Day Avg. Volume29,035
Financial Highlights & Ratios
PEG Ratio-0.59
Price to Book (P/B)0.40
Price to Sales (P/S)0.15
P/FCF Ratio1.64
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Reitmans (Canada) Business Overview & Revenue Model
Company DescriptionReitmans (Canada) Limited is a leading Canadian women's apparel retailer specializing in a wide range of clothing options, including casual and formal wear, accessories, and footwear. Established in 1926, the company operates various brands under its umbrella, including Reitmans, Penningtons, and Addition Elle, catering to diverse customer needs and preferences. With a strong presence in both physical stores and online platforms, Reitmans focuses on providing stylish, quality clothing for women of all shapes and sizes, emphasizing inclusivity and comfort in its offerings.
How the Company Makes MoneyReitmans generates revenue primarily through the sale of women's clothing and accessories across its various brands. The company operates a multi-channel retail model, which includes a combination of brick-and-mortar stores and a robust online shopping platform, allowing it to reach a wider customer base. Key revenue streams include direct sales from retail locations, e-commerce sales, and seasonal promotions. Additionally, Reitmans may benefit from strategic partnerships with suppliers and brands to enhance its product offerings. Seasonal collections, loyalty programs, and targeted marketing campaigns also contribute to driving sales and customer retention, further supporting the company's financial performance.
Reitmans (Canada) Earnings Call Summary
Earnings Call Date:Jun 17, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Apr 09, 2026
Earnings Call Sentiment Negative
The earnings call reflected a challenging quarter for Reitmans Canada Limited, with significant declines in revenue and profitability measures. Despite growth in e-commerce and successful new store openings, the overall sentiment is overshadowed by increased losses and operational challenges.Q1-2026 Updates
Positive Updates
Increase in E-commerce Revenue
Despite overall challenges, e-commerce revenue increased by 1% in the first quarter, indicating growth in the digital sales segment.
Successful New Store Openings
The company opened six new stores during the quarter, which have shown strong growth and performance, exceeding expectations.
Healthy Inventory Levels
Strategic promotional activities led to healthy inventory levels at the end of the quarter, despite challenges in overall sales.
No Long-Term Debt
The company maintained a strong financial position with no long-term debt other than lease liabilities and no amounts drawn under the company's bank credit facilities.
Negative Updates
Decline in Net Revenues
Total net revenues fell by 4.1% to $158.9 million, driven by lower in-store traffic and cautious consumer spending.
Adjusted EBITDA Loss
Adjusted EBITDA was a loss of $10.6 million, compared to a positive $900,000 in the prior year, largely due to lower gross profit.
Increased SG&A Expenses
SG&A expenses rose by 4.2%, with significant increases in occupancy costs and in-store personnel costs.
Widened Net Loss
The company's net loss widened to $10 million, or $0.20 per share, compared to a loss of $1.5 million or $0.03 per share a year ago.
Challenges with Shareholder Engagement
There is ongoing shareholder concern, with 35% supporting changes at the Board level and in the listing structure, which the Board has yet to address.
Company Guidance
In the first quarter of fiscal 2026, Reitmans Canada Limited faced several challenges, resulting in a 4.1% decrease in total net revenues to $158.9 million compared to the previous year. Despite a 1% increase in e-commerce revenue, the company experienced a decline in in-store traffic due to near-record snowfall and cautious consumer spending amid economic uncertainties. This led to a net loss of $10 million and an adjusted EBITDA loss of $10.6 million. Strategic efforts included the opening of six new stores and the commencement of a digital strategic road map, aiming to bolster brand growth and modernize the digital experience. The company plans to reinvest approximately $100 million in growth initiatives over the next five years, targeting $1 billion in annual revenues and adjusted EBITDA of $60-70 million by fiscal 2030. The guidance emphasized a focus on enhancing customer experience and optimizing store locations, with 75% of the growth investment earmarked for store expansions and 25% for digital technology modernization.Reitmans (Canada) Financial Statement Overview
Summary
Reitmans (Canada) demonstrates a mixed financial performance. Strong gross profit margins and a stable balance sheet with moderate leverage are positives. However, low net profit margins and declining revenue present challenges. Cash flows are generally positive but exhibit volatility, indicating potential risks.Income Statement
The company shows a mixed performance in its income statement. The TTM gross profit margin is strong at approximately 56%, indicating efficient cost management. However, the net profit margin is low at around 0.47%, reflecting challenges in translating revenue to net income. Revenue has fluctuated, showing a decline over the past year, which is concerning. EBIT and EBITDA margins indicate weak operational efficiency, although there is a positive trend from the previous year.65
Positive
Balance Sheet
The balance sheet reflects moderate financial stability. The debt-to-equity ratio is approximately 0.55, which is manageable. The equity ratio stands at about 55%, suggesting a solid equity base relative to assets. Return on equity is low, highlighting inefficiencies in generating returns from shareholders' equity. Overall, the company maintains a reasonable balance between debt and equity, but there is room for improvement in asset utilization.70
Positive
Cash Flow
Cash flow analysis reveals a stable cash generation capability. The TTM operating cash flow to net income ratio is robust, indicating good cash conversion. However, free cash flow growth is inconsistent, with a recent decline. The free cash flow to net income ratio is favorable, suggesting effective management of capital expenditures. While cash flows are generally positive, volatility in free cash flow warrants caution.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 774.52M | 773.80M | 794.69M | 661.95M | 533.36M | 869.50M |
| Gross Profit | 412.51M | 435.04M | 431.00M | 353.17M | 246.25M | 444.39M |
| EBITDA | 64.92M | 78.44M | 76.22M | 94.70M | 194.46M | -41.58M |
| Net Income | -177.00K | 12.14M | 14.81M | 158.26M | -172.22M | -87.43M |
Balance Sheet | ||||||
| Total Assets | 546.28M | 574.09M | 490.75M | 314.27M | 397.23M | 560.17M |
| Cash, Cash Equivalents and Short-Term Investments | 119.40M | 158.12M | 116.65M | 25.50M | 77.92M | 89.41M |
| Total Debt | 165.35M | 155.40M | 137.59M | 81.94M | 123.22M | 213.87M |
| Total Liabilities | 251.59M | 277.66M | 211.73M | 130.45M | 375.55M | 366.35M |
| Stockholders Equity | 294.69M | 296.43M | 279.02M | 183.83M | 21.68M | 193.82M |
Cash Flow | ||||||
| Free Cash Flow | 29.82M | 73.06M | 51.83M | -35.38M | 34.03M | 53.70M |
| Operating Cash Flow | 71.90M | 104.26M | 69.53M | -24.73M | 40.20M | 77.18M |
| Investing Cash Flow | -42.08M | -31.19M | -17.70M | -15.22M | -6.16M | 17.95M |
| Financing Cash Flow | -40.96M | -40.03M | -39.90M | -9.19M | -46.82M | -121.78M |
Reitmans (Canada) Technical Analysis
Negative
2.00
Price Trends
2.10
Negative
2.07
Positive
2.08
Negative
Market Momentum
0.03
Positive
44.86
Neutral
38.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RET.A, the sentiment is Negative. The current price of 2 is below the 20-day moving average (MA) of 2.17, below the 50-day MA of 2.10, and below the 200-day MA of 2.08, indicating a bearish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 44.86 is Neutral, neither overbought nor oversold. The STOCH value of 38.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:RET.A.
Reitmans (Canada) Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | C$13.53B | 47.25 | 26.49% | ― | 26.51% | 172.52% | |
71 Outperform | $55.69B | 43.10 | 102.01% | 0.20% | 14.02% | 20.11% | |
66 Neutral | C$1.72B | 64.71 | 6.07% | ― | 3.78% | -54.87% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | C$7.28B | 298.82 | 45.71% | 0.86% | -5.14% | -87.15% | |
54 Neutral | C$105.69M | -247.62 | 0.10% | ― | -1.95% | -102.54% | |
52 Neutral | C$120.39M | -3.91 | -19.60% | ― | 4.87% | -1195.39% |
* Consumer Cyclical Sector Average
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Reitmans (Canada)
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.