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Reitmans (Canada) Limited (TSE:RET)
:RET
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Reitmans (Canada)
(RET)
Rating:58Neutral
Price Target:
C$2.50
▲(11.11%Upside)
Reitmans (Canada) (RET) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$100.79M
Dividend YieldN/A
Average Volume (3M)4.63K
Price to Earnings (P/E)30.2
Beta (1Y)0.38
Revenue Growth-3.33%
EPS Growth-78.69%
CountryCA
Employees6,812
SectorReal Estate
Sector Strength73
IndustryApparel - Retail
Share Statistics
EPS (TTM)-0.20
Shares Outstanding13,440,000
10 Day Avg. Volume5,640
30 Day Avg. Volume4,625
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)0.81
Price to Sales (P/S)0.00
P/FCF Ratio1.53
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
Reitmans (Canada) Business Overview & Revenue Model
Company DescriptionReitmans (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, including 237 Reitmans, 90 Penningtons, and 77 RW&CO. The company was founded in 1926 and is headquartered in Montreal, Canada.
How the Company Makes MoneyReitmans (Canada) Limited generates revenue primarily through the sale of women's clothing and accessories across its various retail brands. The company utilizes a multi-channel sales strategy, which includes physical retail stores and an online e-commerce platform, to reach a broad customer base. Revenue streams are primarily driven by direct sales to consumers at these physical and digital outlets. Key factors contributing to its earnings include its ability to offer a wide range of sizes, styles, and competitive pricing, as well as maintaining brand loyalty through customer engagement and marketing initiatives. Partnerships with suppliers and efficient supply chain management also play a significant role in optimizing costs and maximizing profitability.
Reitmans (Canada) Earnings Call Summary
Earnings Call Date:Jun 17, 2025
(Q3-2025)
| % Change Since: -16.04%|
Next Earnings Date:Sep 18, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook for Reitmans Canada Limited. While the company demonstrated strong financial management, resulting in improved gross margins and a robust cash position, there were notable challenges. These included a decrease in revenue and comparable sales, reduced EBITDA, and expressed shareholder concerns regarding governance. Despite positive operational progress and store expansion, these issues led to an overall cautious sentiment.Q3-2025 Updates
Positive Updates
Gross Margin Improvement
Achieved a 166 basis point improvement in gross margin compared to a year ago, reaching 57.3% due to strong inventory management and reduced promotional activities.
Strong Financial Position
Ended the quarter with working capital of $172.9 million, a cash position of $123.1 million, and zero debt with an undrawn $150 million revolving credit facility.
Successful Marketing Campaigns
Strong results from ambassadors marketing campaign featuring notable figures, contributing to brand visibility and customer engagement.
Continued Store Expansion
Opened new RW&Co. store in Mirabel and two new PENN stores, expanding the store footprint and supporting growth in various regions.
Negative Updates
Revenue Decline
Net revenues decreased by 2.9% to $187.7 million due to lower store count and customers delaying fall clothing purchases.
Decrease in Comparable Sales
Comparable sales for the quarter were down 1.9% mainly due to lower e-commerce traffic, despite increased sales per transaction.
Reduced EBITDA
Adjusted EBITDA decreased to $3.8 million from $9.5 million in the previous year, impacted by increased SG&A expenses and foreign exchange losses.
Shareholder Concerns
Shareholder dissatisfaction with governance and decision-making at board level, highlighting issues with minority shareholder oppression and lack of board independence.
Company Guidance
During Reitmans Canada Limited's Fiscal 2025 Third Quarter Earnings Call, management provided several key metrics and updates. The company reported a 2.9% decrease in net revenues, totaling $187.7 million, attributed to warmer-than-usual weather and a lower store count. Despite the decline in revenues, the gross margin improved by 166 basis points to 57.3%, aided by effective inventory management and reduced promotional activities. The adjusted EBITDA for the quarter was $3.8 million, down from $9.5 million the previous year, largely due to increased selling, general and administrative expenses and foreign exchange losses. Net earnings were $2.1 million or $0.04 per share, compared to $5.3 million or $0.11 per share a year ago. The company maintained a strong financial position with $123.1 million in cash and no debt. Reitmans also repurchased 91,100 shares during the quarter. Capital expenditures for the fiscal year are projected at $31 million, with $20.1 million spent in the first nine months. The company's focus remains on growth and modernization, including opening new stores and upgrading digital infrastructure.Reitmans (Canada) Financial Statement Overview
Summary
Reitmans (Canada) Limited shows a resilient recovery in profitability with improved net income and margins. While the balance sheet indicates enhanced stability with an improved debt-to-equity ratio, the company still holds considerable debt. Cash flows are positive, though variability in free cash flow growth is a concern.Income Statement
The income statement shows a mixed performance. The company has seen a decline in revenue over the past few years, but gross profit margins have remained relatively stable around 56%. The net profit margin improved significantly in 2025, moving from a negative position in 2022 to a positive 1.57% in 2025, indicating a recovery in profitability. However, the EBIT margin has been volatile, reflecting potential operational challenges.65
Positive
Balance Sheet
The balance sheet reflects strengthening financial stability. The debt-to-equity ratio has improved, indicating a reduction in leverage risk. The equity ratio also shows positive growth, highlighting increased financial stability. However, the company still maintains a significant level of debt, which may pose future risks.70
Positive
Cash Flow
Cash flow analysis reveals positive signs with consistent free cash flow generation and a strong operating cash flow to net income ratio. However, the free cash flow growth has been inconsistent, which could indicate challenges in sustaining cash generation in the long term.60
Neutral
| Breakdown | ||||
| Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 773.80M | 794.69M | 661.95M | 533.36M | 869.50M | Gross Profit |
| 435.04M | 431.00M | 353.17M | 246.25M | 444.39M | EBIT |
| 17.84M | 22.93M | 143.15M | -108.00M | -51.44M | EBITDA |
| 78.44M | 76.22M | 94.70M | 194.46M | -41.58M | Net Income Common Stockholders |
| 12.14M | 14.81M | 158.26M | -172.22M | -87.43M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 158.12M | 116.65M | 25.50M | 77.92M | 89.41M | Total Assets |
| 574.09M | 490.75M | 314.27M | 397.23M | 560.17M | Total Debt |
| 155.40M | 137.59M | 81.94M | 123.22M | 213.87M | Net Debt |
| -2.72M | 20.94M | 56.44M | 45.30M | 124.46M | Total Liabilities |
| 277.66M | 211.73M | 130.45M | 375.55M | 366.35M | Stockholders Equity |
| 296.43M | 279.02M | 183.83M | 21.68M | 193.82M |
| Cash Flow | Free Cash Flow | |||
| 73.06M | 51.83M | -35.38M | 34.03M | 53.70M | Operating Cash Flow |
| 104.26M | 69.53M | -24.73M | 40.20M | 77.18M | Investing Cash Flow |
| -31.19M | -17.70M | -15.22M | -6.16M | 17.95M | Financing Cash Flow |
| -40.03M | -39.90M | -9.19M | -46.82M | -121.78M |
Reitmans (Canada) Technical Analysis
Negative
2.25
Price Trends
2.40
Negative
2.44
Negative
2.59
Negative
Market Momentum
-0.01
Positive
40.62
Neutral
15.40
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 2.25 is below the 20-day moving average (MA) of 2.55, below the 50-day MA of 2.40, and below the 200-day MA of 2.59, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 40.62 is Neutral, neither overbought nor oversold. The STOCH value of 15.40 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Performance Comparison
TSE:RET
Reitmans (Canada)
2.25
-0.35
-13.46%
TSE:ROOT
Roots Corporation
3.24
1.18
57.28%
ATZAF
Aritzia
48.45
21.21
77.86%
Reitmans (Canada) Corporate Events
Executive/Board ChangesShareholder Meetings
Reitmans (Canada) Limited Elects Board of Directors at Annual Meeting
Neutral
Jun 18, 2025
Reitmans (Canada) Limited announced the election of its board of directors during the Annual General Meeting of Shareholders in Laval, Québec. All director nominees listed in the Management Proxy Circular were elected, indicating strong shareholder support. This election is significant for the company’s governance as it continues to maintain its position as a prominent apparel retailer in the Canadian market.
Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Reitmans Reports First Quarter Loss Amid Weather and Economic Challenges
Negative
Jun 17, 2025
Reitmans (Canada) Limited reported a challenging first quarter for 2025, with a 4.1% decrease in net revenues to $158.9 million, primarily due to severe winter weather and economic uncertainty impacting in-store traffic. Despite growth in e-commerce sales, the company faced a net loss of $10 million, attributed to lower gross profits and increased operational costs. In response, Reitmans is implementing a five-year strategic plan to drive long-term growth, which includes optimizing its store fleet and advancing its digital strategy with new e-commerce storefronts and a migration to Shopify. The company also plans to renew its normal course issuer bid to repurchase shares, reflecting ongoing efforts to strengthen its market position.
Executive/Board ChangesBusiness Operations and Strategy
Reitmans (Canada) Limited Strengthens Board with Technology Expert Martin Thibodeau
Positive
May 13, 2025
Reitmans (Canada) Limited has appointed Martin Thibodeau, a seasoned technology executive with over three decades of experience in IT within the retail industry, to its Board of Directors. This strategic addition aims to bolster the company’s technological capabilities and support its multi-year strategy for future growth, reflecting a commitment to modernization and strengthening its position in the apparel retail market.
Executive/Board ChangesBusiness Operations and Strategy
Reitmans Appoints Martin Thibodeau to Board of Directors
Positive
May 13, 2025
Reitmans (Canada) Limited has appointed Martin Thibodeau, a seasoned technology executive, to its Board of Directors. Thibodeau’s extensive experience in IT and fashion retail is expected to support the company’s strategic business objectives and modernization efforts, as it continues to implement its multi-year strategy for future growth.
Business Operations and StrategyFinancial Disclosures
Reitmans Reports Fiscal 2025 Results and Outlines Growth Ambitions
Neutral
Apr 10, 2025
Reitmans (Canada) Limited reported a decrease in net revenues for the fourth quarter and fiscal year 2025, with a notable decline in net earnings. Despite these challenges, the company achieved strong performance during key shopping events like Black Friday and Cyber Monday, which helped offset some of the negative impacts. The company successfully implemented a new inventory management system and made strategic decisions to streamline operations, including closing certain business segments. Looking forward, Reitmans aims to expand its store footprint and invest over $100 million in growth initiatives, with a goal of reaching $1 billion in annual net revenue by fiscal 2030.
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.