Reitmans (Canada) Limited (TSE:RET)
:RET
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Reitmans (Canada)
(RET)
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Rating:56Neutral
Price Target:
C$2.50
▲(16.28% Upside)
Action:Reiterated
Date:06/18/26
The score is driven primarily by solid revenue growth and strong recent cash generation, but is held back by thin/volatile profitability (negative earnings implied by the negative P/E) and mixed technical momentum with longer-term trend weakness.
Positive Factors
Revenue growth & gross margin
Consistent TTM revenue growth of ~16% alongside a roughly 52% gross margin indicates durable merchandising strength and pricing power. That combination supports structural top-line resilience and provides margin headroom to fund stores, e‑commerce investment and marketing over the medium term.
Negative Factors
Thin and volatile profitability
Very low operating margins and near‑breakeven net income limit the firm's ability to absorb cost inflation or increased competition. Profit volatility across recent years undermines predictability for reinvestment, dividends or sustained capital returns over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth & gross margin
Consistent TTM revenue growth of ~16% alongside a roughly 52% gross margin indicates durable merchandising strength and pricing power. That combination supports structural top-line resilience and provides margin headroom to fund stores, e‑commerce investment and marketing over the medium term.
Read all positive factors
Reitmans (Canada) (RET) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$106.77M
Dividend YieldN/A
Average Volume (3M)5.18K
Price to Earnings (P/E)36.3
Beta (1Y)0.37
Revenue Growth1.46%
EPS Growth-27.35%
CountryCA
Employees6,812
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)0.05
Shares Outstanding13,440,000
10 Day Avg. Volume5,884
30 Day Avg. Volume5,181
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 functions as a Canadian apparel retailer, with a core focus on women's clothing. The company also offers a selection of menswear. It engages with customers through both its network of physical stores and its onl...
How the Company Makes Money
Reitmans primarily makes money by selling apparel and accessories directly to consumers through (1) company-operated retail stores and (2) its e-commerce channels. Revenue is generated when customers purchase merchandise under its banners (e.g., R...
Reitmans (Canada) Earnings Call Summary
Earnings Call Date:Jun 17, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Sep 17, 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
52
Neutral
Balance Sheet
63
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Jan 2026 | Jan 2024 | Jan 2023 | Jan 2022 | Jan 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 778.11M | 776.85M | 773.80M | 794.69M | 661.95M | 533.36M |
| Gross Profit | 390.70M | 434.55M | 435.04M | 431.00M | 353.17M | 246.25M |
| EBITDA | 71.35M | 66.96M | 78.44M | 76.22M | 94.70M | 194.46M |
| Net Income | 2.77M | -916.00K | 12.14M | 14.81M | 158.26M | -172.22M |
Balance Sheet | ||||||
| Total Assets | 534.09M | 553.46M | 574.09M | 490.75M | 314.27M | 397.23M |
| Cash, Cash Equivalents and Short-Term Investments | 101.92M | 150.96M | 158.12M | 116.65M | 25.50M | 77.92M |
| Total Debt | 165.43M | 161.55M | 155.40M | 137.59M | 81.94M | 123.22M |
| Total Liabilities | 253.16M | 266.94M | 277.66M | 211.73M | 130.45M | 375.55M |
| Stockholders Equity | 280.92M | 286.52M | 296.43M | 279.02M | 183.83M | 21.68M |
Cash Flow | ||||||
| Free Cash Flow | 60.74M | 34.60M | 73.06M | 51.83M | -35.38M | 34.03M |
| Operating Cash Flow | 90.00M | 71.62M | 104.26M | 69.53M | -24.73M | 40.20M |
| Investing Cash Flow | -29.26M | -37.02M | -31.19M | -17.70M | -15.22M | -6.16M |
| Financing Cash Flow | -47.27M | -45.53M | -40.03M | -39.90M | -9.19M | -46.82M |
Reitmans (Canada) Technical Analysis
Positive
2.15
Price Trends
2.12
Positive
2.21
Positive
2.22
Positive
Market Momentum
0.03
Negative
67.96
Neutral
70.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RET, the sentiment is Positive. The current price of 2.15 is above the 20-day moving average (MA) of 2.14, above the 50-day MA of 2.12, and below the 200-day MA of 2.22, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 67.96 is Neutral, neither overbought nor oversold. The STOCH value of 70.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | C$18.86B | 49.35 | 30.33% | ― | 35.21% | 80.50% | |
69 Neutral | C$163.06M | 64.78 | 3.16% | ― | 5.59% | ― | |
63 Neutral | C$1.67B | 10.82 | 12.69% | 3.11% | 1.41% | -3.11% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | C$1.85B | -8.20 | -12.40% | 2.40% | -9.88% | -246.72% | |
56 Neutral | C$106.77M | 36.25 | -0.06% | ― | 1.46% | -27.35% | |
54 Neutral | C$1.34B | 59.58 | 4.29% | ― | 13.14% | -76.53% |
* Consumer Cyclical Sector Average
TSE:RET
Reitmans (Canada)
2.49
0.24
10.67%
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Reitmans (Canada) Corporate Events
Business Operations and StrategyFinancial Disclosures
Reitmans Canada Posts Stronger Q4 Margins as It Pushes Ahead With Strategic Overhaul
Positive
Apr 9, 2026
Reitmans (Canada) Limited reported modest top-line growth for the fourth quarter and fiscal 2026, with net revenues up 1.2% in the quarter and 0.4% for the year, and stronger fourth-quarter profitability as gross margin expanded by 300 basis point...
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.