Reitmans (Canada) Limited (TSE:RET)
:RET
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Reitmans (Canada)
(RET)
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Rating:55Neutral
Price Target:
C$2.50
▲(16.28% Upside)
Action:ReiteratedDate:12/20/25
Reitmans (Canada) has a stable financial position but faces challenges in profitability and cash flow growth. Technical indicators suggest weak momentum, and valuation metrics are poor with a negative P/E ratio. The lack of earnings call data and corporate events further limits positive outlook.
Positive Factors
Gross margin resilience
A 55%+ gross margin provides a durable buffer vs. cost inflation and promotional pressure. It supports funding store operations, omnichannel investments and markdown cycles, enabling longer runway to restore operating margins without immediate margin collapse.
Negative Factors
Declining free cash flow growth
A sharp drop in FCF growth constrains capacity to invest in omnichannel, remodel stores, or absorb weak seasons. Persistently weaker FCF elevates liquidity and reinvestment risk and limits ability to deleverage or fund strategic turnaround initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Gross margin resilience
A 55%+ gross margin provides a durable buffer vs. cost inflation and promotional pressure. It supports funding store operations, omnichannel investments and markdown cycles, enabling longer runway to restore operating margins without immediate margin collapse.
Read all positive factors
Reitmans (Canada) (RET) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$100.09M
Dividend YieldN/A
Average Volume (3M)5.18K
Price to Earnings (P/E)30.6
Beta (1Y)0.33
Revenue Growth-1.95%
EPS Growth-102.54%
CountryCA
Employees6,812
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)0.02
Shares Outstanding13,440,000
10 Day Avg. Volume5,884
30 Day Avg. Volume5,181
Financial Highlights & Ratios
PEG Ratio-0.09
Price to Book (P/B)0.45
Price to Sales (P/S)0.16
P/FCF Ratio2.44
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 through the sale of women's clothing and accessories across its various brand outlets and online platforms. The company operates a multi-channel retail model that includes physical stores and an e-commerce webs...
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 presented a mixed outlook with several positive strategic initiatives, such as the growth in e-commerce revenue and digital modernization efforts. However, these were overshadowed by significant financial challenges, including a decline in net revenues and an increase in losses. Despite maintaining a strong financial position with no long-term debt, the overall financial performance was disappointing.Positive Updates
E-commerce Revenue Growth
Achieved a 1% increase in e-commerce revenue, indicating strength in online sales despite a challenging environment.
Negative Updates
Decline in Total Net Revenues
Total net revenues fell by 4.1% to $158.9 million, impacted by reduced in-store traffic and cautious consumer spending.
Read all updates
Q1-2026 Updates
Positive
Negative
E-commerce Revenue Growth
Achieved a 1% increase in e-commerce revenue, indicating strength in online sales despite a challenging environment.
Read all positive updates
Company Guidance
During the Fiscal 2026 First Quarter Earnings Call for Reitmans Canada Limited, several key metrics and strategic initiatives were discussed. The company reported a 4.1% decrease in total net revenues to $158.9 million, attributed to reduced in-store traffic and cautious consumer spending amid economic uncertainty. Despite achieving a 1% increase in e-commerce revenue, overall comparable sales, including e-commerce, decreased by 4.5%. Gross profit declined by $5.4 million to $88.5 million, with a 100 basis point drop in the gross profit margin to 55.7%. Adjusted EBITDA showed a loss of $10.6 million, while the net loss widened to $10 million. As part of its strategic plan, Reitmans aims to achieve $1 billion in annual revenues by the end of fiscal 2030 and grow adjusted EBITDA to between $60 million and $70 million, driven by efficiency improvements and product speed to market. The company plans to reinvest approximately $100 million in growth initiatives over the next five years, with 75% allocated towards store investments and 25% towards digital modernization.Reitmans (Canada) Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Jan 2024 | Jan 2023 | Jan 2022 | Jan 2021 | Apr 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
2.15
Price Trends
2.35
Negative
2.31
Negative
2.23
Negative
Market Momentum
-0.08
Positive
37.77
Neutral
18.63
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RET, the sentiment is Negative. The current price of 2.15 is below the 20-day moving average (MA) of 2.26, below the 50-day MA of 2.35, and below the 200-day MA of 2.23, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 37.77 is Neutral, neither overbought nor oversold. The STOCH value of 18.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:RET.
Reitmans (Canada) Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | C$13.02B | 23.21 | 29.12% | ― | 26.51% | 172.52% | |
67 Neutral | C$1.74B | 12.20 | 13.08% | 3.11% | 1.99% | 31.36% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | C$1.82B | -9.31 | -11.45% | 2.40% | 3.71% | 80.35% | |
57 Neutral | $1.45B | 3.20 | 4.23% | ― | 3.78% | -54.87% | |
55 Neutral | C$100.09M | 30.61 | -0.06% | ― | -1.95% | -102.54% | |
54 Neutral | C$138.03M | 14.11 | -21.42% | ― | 4.87% | -1195.39% |
* Consumer Cyclical Sector Average
TSE:RET
Reitmans (Canada)
2.09
-0.22
-9.52%
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Reitmans (Canada) Corporate Events
Business Operations and StrategyExecutive/Board Changes
Reitmans (Canada) Overhauls Board Leadership as Stephen Reitman Becomes Chairman Emeritus
Positive
Feb 20, 2026
Reitmans (Canada) Limited announced a planned leadership change at the board level, marking a significant milestone in its governance evolution. Longtime executive Stephen Reitman will retire as Executive Chairman on March 6, 2026, after more than...
Business Operations and StrategyExecutive/Board Changes
Reitmans Grants New Management Stock Options Under Long-Term Incentive Plan
Positive
Feb 18, 2026
Reitmans (Canada) Limited has granted 889,930 stock options to members of its management team, allowing them to purchase Class A non-voting shares at an exercise price of $2.14. The options, which expire on May 9, 2030 and are subject to time-base...
Business Operations and StrategyFinancial Disclosures
Reitmans Boosts Q3 Revenue and EBITDA as Transformation Strategy Gains Traction
Positive
Dec 18, 2025
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 ma...
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.