Reitmans (Canada) Class A (TSE:RET.A)
OTHER OTC:RET.A
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Reitmans (Canada)
(OTC:RET.A)
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Rating:57Neutral
Price Target:
C$2.00
▲(0.00% Upside)
Action:ReiteratedDate:04/11/26
The score is driven primarily by improving financial fundamentals—especially solid recent free cash flow and a reasonably stable balance sheet—tempered by weakening profitability and a small net loss in 2026. Technicals are a secondary drag with the stock trading below key moving averages and negative MACD, and valuation is also a headwind given the high P/E and no provided dividend yield.
Positive Factors
Sustained Revenue Recovery
Sustained revenue recovery demonstrates regained customer demand and better assortment fit across the company's banners, driving scale and gross-profit dollars. Continued top-line momentum across stores and e-commerce supports capacity to absorb fixed costs and fund strategic investments over quarters.
Negative Factors
Weakened Profitability / Net Loss
Margin compression and a small 2026 net loss indicate pressure on operating leverage and pricing power. Recovering consistent profitability likely requires sustained sales mix improvement or structural cost reductions, a process that can take multiple quarters to fully materialize.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Recovery
Sustained revenue recovery demonstrates regained customer demand and better assortment fit across the company's banners, driving scale and gross-profit dollars. Continued top-line momentum across stores and e-commerce supports capacity to absorb fixed costs and fund strategic investments over quarters.
Read all positive factors
Reitmans (Canada) (RET.A) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$97.37M
Dividend YieldN/A
Average Volume (3M)29.14K
Price to Earnings (P/E)30.6
Beta (1Y)0.32
Revenue Growth-1.95%
EPS Growth-102.54%
CountryCA
Employees5,000
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)-0.10
Shares Outstanding36,921,124
10 Day Avg. Volume32,471
30 Day Avg. Volume29,137
Financial Highlights & Ratios
PEG Ratio1.13
Price to Book (P/B)0.39
Price to Sales (P/S)0.14
P/FCF Ratio3.22
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 Description
Reitmans (Canada) Limited primarily engages in the retail sale of women's wear apparel in Canada. It also offers apparel for men. The company serves customers through retail and e-commerce channels. As of April 21, 2022, it operated 404 stores, in...
How the Company Makes Money
Reitmans generates revenue primarily from the sale of women’s apparel and accessories through two main channels: (1) physical retail stores and (2) direct-to-consumer e-commerce. Sales are driven by merchandising across its banners, which target d...
Reitmans (Canada) Earnings Call Summary
Earnings Call Date:Jun 17, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jun 23, 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.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.
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.
Read all updates
Q1-2026 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
58
Neutral
Balance Sheet
67
Positive
Cash Flow
72
Positive
| Breakdown | Jan 2026 | Jan 2024 | Jan 2023 | Jan 2022 | Jan 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 776.85M | 773.80M | 794.69M | 661.95M | 533.36M |
| Gross Profit | 434.55M | 435.04M | 431.00M | 353.17M | 246.25M |
| EBITDA | 66.96M | 78.44M | 76.22M | 94.70M | 194.46M |
| Net Income | -916.00K | 12.14M | 14.81M | 158.26M | -172.22M |
Balance Sheet | |||||
| Total Assets | 553.46M | 574.09M | 490.75M | 314.27M | 397.23M |
| Cash, Cash Equivalents and Short-Term Investments | 150.96M | 158.12M | 116.65M | 25.50M | 77.92M |
| Total Debt | 161.55M | 155.40M | 137.59M | 81.94M | 123.22M |
| Total Liabilities | 266.94M | 277.66M | 211.73M | 130.45M | 375.55M |
| Stockholders Equity | 286.52M | 296.43M | 279.02M | 183.83M | 21.68M |
Cash Flow | |||||
| Free Cash Flow | 34.60M | 73.06M | 51.83M | -35.38M | 34.03M |
| Operating Cash Flow | 71.62M | 104.26M | 69.53M | -24.73M | 40.20M |
| Investing Cash Flow | -37.02M | -31.19M | -17.70M | -15.22M | -6.16M |
| Financing Cash Flow | -45.53M | -40.03M | -39.90M | -9.19M | -46.82M |
Reitmans (Canada) Technical Analysis
Negative
2.00
Price Trends
2.01
Negative
2.08
Negative
2.06
Negative
Market Momentum
-0.04
Positive
42.66
Neutral
33.33
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 above the 20-day moving average (MA) of 1.92, below the 50-day MA of 2.01, and below the 200-day MA of 2.06, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 42.66 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | C$156.46M | 25.19 | -21.42% | ― | 4.87% | -1195.39% | |
74 Outperform | C$14.82B | 23.21 | 29.12% | ― | 26.51% | 172.52% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | C$14.82B | 23.55 | 20.31% | 1.47% | 6.64% | 27.37% | |
58 Neutral | C$1.50B | 3.20 | 4.23% | ― | 3.78% | -54.87% | |
57 Neutral | C$97.37M | 30.61 | -0.06% | ― | -1.95% | -102.54% |
* Consumer Cyclical Sector Average
TSE:RET.A
Reitmans (Canada)
1.88
-0.07
-3.59%
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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.