Reitmans (Canada) (RET) AI Stock Analysis

• Market Cap: C$105.70M
• Dividend Yield: N/A
• Average Volume (3M): 5.18K
• Price to Earnings (P/E): 30.6
• Beta (1Y): 0.30
• Revenue Growth: -1.95%
• EPS Growth: -102.54%
• Country: CA
• Employees: 6,812
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 0.02
• Shares Outstanding: 13,440,000
• 10 Day Avg. Volume: 5,884
• 30 Day Avg. Volume: 5,181
• PEG Ratio: -0.09
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 2.44
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: C$2.50 ▲(16.28% Upside)
• Action: Reiterated Date: 12/20/25
• Date: Action: Reiterated 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 sustained gross margin of ~55% indicates durable sourcing and pricing power in apparel. This margin buffer supports absorption of markdowns, funds SG&A and omnichannel investments, and provides lasting protection for operating profitability through retail cycles over the next several months.

Balanced leverage and equity base

Moderate leverage and a strong equity ratio offer financial flexibility. A 0.54 debt/equity profile and ~54% equity base reduce refinancing pressure, enable investment in inventory and e-commerce, and provide a stable capital structure to support operations across the 2–6 month horizon.

Omnichannel, multi-banner retail model

A diversified banner strategy plus physical and e-commerce channels supports customer segmentation and inventory routing efficiencies. Scale across banners aids sourcing, marketing and distribution investments, making revenue mix and cost management more resilient over medium-term retail cycles.

Negative Factors

Extremely low net profitability

A near-flat net margin constrains internal reinvestment and makes earnings highly sensitive to cost or sales shocks. With such minimal profit per sales dollar, the company has limited capacity to build reserves or fund growth initiatives without external capital over the coming months.

Sharp EPS deterioration

A >100% decline in EPS signals volatility in core earnings, reducing predictability of returns. Persistent EPS weakness undermines retained earnings accumulation, increases refinancing or equity-raising risk, and constrains strategic investments across the medium term.

Declining free cash flow growth

A ~26% drop in free cash flow growth tightens liquidity and reduces flexibility to fund inventory, store investments, or e-commerce initiatives. Lower FCF growth increases reliance on working capital management and external funding, elevating execution risk over the next several months.

Reitmans (Canada) Business Overview & Revenue Model

Company Description

Reitmans (Canada) Limited is a leading women's apparel retailer in Canada, operating a variety of clothing brands that cater to different demographics and fashion needs. Established in 1926, the company has established a strong presence with its flagship Reitmans brand, along with other labels such as Penningtons, Addition Elle, and Thyme Maternity. The company focuses on providing stylish, affordable, and size-inclusive clothing, ranging from casual wear to business attire, while also emphasizing a commitment to customer satisfaction and community engagement.

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 website, allowing it to reach a broader customer base. Key revenue streams include direct sales from retail locations, online sales, and seasonal promotions. Additionally, Reitmans benefits from strategic partnerships with suppliers and manufacturers to optimize inventory and enhance product offerings. The company's emphasis on customer loyalty programs and targeted marketing campaigns also contribute to steady repeat business and customer retention, further bolstering its earnings.

Reitmans (Canada) Financial Statement Overview

Summary

Reitmans (Canada) presents a stable financial position with modest revenue growth but struggles with profitability. The balance sheet is stable with a balanced leverage approach, but returns on equity are low. Cash flow generation is adequate, though the decline in free cash flow growth is worrying.

Income Statement

Reitmans (Canada) shows a mixed performance in its income statement. The TTM data indicates a slight revenue growth of 0.95%, but the net profit margin is extremely low at 0.13%, reflecting challenges in profitability. The gross profit margin remains healthy at 55.39%, indicating efficient cost management. However, EBIT and EBITDA margins have decreased compared to previous periods, suggesting pressure on operational efficiency.

Balance Sheet

The balance sheet reflects moderate financial stability with a debt-to-equity ratio of 0.54, indicating a balanced approach to leveraging. The equity ratio stands at 53.95%, showing a solid equity base. However, the return on equity is low at 0.35%, highlighting limited returns on shareholder investments. Overall, the balance sheet is stable but lacks strong growth indicators.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 25.97%, indicating potential liquidity challenges. The operating cash flow to net income ratio is 0.60, suggesting moderate cash generation relative to net income. The free cash flow to net income ratio is 0.51, reflecting adequate cash flow coverage. While cash flow generation is stable, the decline in growth is a concern.

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

• Technical Analysis Sentiment: Neutral
• Last Price: 2.15
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RET, the sentiment is Neutral. The current price of 2.15 is below the 20-day moving average (MA) of 2.40, below the 50-day MA of 2.38, and below the 200-day MA of 2.25, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.75 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:RET.

Reitmans (Canada) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATZ	71 Outperform	C$14.29B	23.21	30.09%	―	26.51%	172.52%
TOY	68 Neutral	C$1.87B	3.29	6.75%	2.40%	3.71%	80.35%
LNF	67 Neutral	C$1.90B	12.20	15.07%	3.11%	1.99%	31.36%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RET	55 Neutral	C$105.70M	30.61	-0.06%	―	-1.95%	-102.54%
GOOS	50 Neutral	C$1.56B	3.20	3.73%	―	3.78%	-54.87%
ROOT	48 Neutral	C$142.35M	14.11	-19.60%	―	4.87%	-1195.39%

Reitmans (Canada) Corporate Events

Reitmans (Canada) Overhauls Board Leadership as Stephen Reitman Becomes Chairman Emeritus

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 50 years with the company, and transition to the roles of Chairman Emeritus and Board Director.

Independent director Samuel Minzberg will become Chairman of the Board on March 7, 2026, reflecting the company’s emphasis on independent oversight and continuity. The move, following the 2023 appointment of Andrea Limbardi as President and CEO, underscores RCL’s focus on structured succession planning and stable leadership as it advances its transformational strategy.

The most recent analyst rating on (TSE:RET) stock is a Hold with a C$2.50 price target. To see the full list of analyst forecasts on Reitmans (Canada) stock, see the TSE:RET Stock Forecast page.

Reitmans Grants New Management Stock Options Under Long-Term Incentive Plan

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-based vesting, were issued under the retailer’s long-term incentive plan aimed at aligning management rewards with long-term financial performance.

The move underscores Reitmans’ use of equity-based compensation to retain and motivate key executives as it continues operating its 388-store network across Canada. By tying management incentives to share value over several years, the company is reinforcing a focus on sustained growth and shareholder interests rather than short-term results.

The most recent analyst rating on (TSE:RET) stock is a Hold with a C$2.50 price target. To see the full list of analyst forecasts on Reitmans (Canada) stock, see the TSE:RET Stock Forecast page.

Reitmans Boosts Q3 Revenue and EBITDA as Transformation Strategy Gains Traction

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 margin compression due to higher promotional activity and foreign-exchange pressures. Adjusted EBITDA jumped 47% to $5.6 million, reflecting improved operating performance, but net earnings declined to $0.9 million from $2.1 million a year earlier, as restructuring and transformation-related costs of $1.4 million weighed on the bottom line; management emphasized progress under its five-year ‘Designed for the Future’ strategy, highlighted by the re-opening of the RW&CO. Saint-Bruno flagship and several new store openings, while the company maintains a strong cash position, no significant long-term debt aside from leases, and undrawn bank facilities, underscoring financial flexibility as it pursues a disciplined store investment and modernization program.

The most recent analyst rating on (TSE:RET) stock is a Hold with a C$2.50 price target. To see the full list of analyst forecasts on Reitmans (Canada) stock, see the TSE:RET Stock Forecast page.