Reitmans (Canada) (RET) AI Stock Analysis

• Market Cap: C$110.09M
• Dividend Yield: N/A
• Average Volume (3M): 5.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.22
• 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: -0.59
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 1.64
• 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)

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

Diversified brand portfolio

Owning multiple brands across demographics provides durable market coverage and lowers concentration risk. This structural breadth supports steady demand across fashion segments, enables cross-selling and targeted merchandising, and cushions revenue volatility over months.

Omnichannel distribution

A combined store and e-commerce model creates multiple revenue funnels and long-term customer reach. Structural omnichannel capability supports resilience to retail shifts, improves customer retention and lifetime value, and enables scalable inventory allocation over a multi-month horizon.

Healthy gross profit margin

A ~55% gross margin indicates efficient sourcing and product economics, providing a durable buffer to absorb SG&A pressure and markdowns. Sustained high gross margins support margin recovery initiatives and long-term profitability if operating efficiency improves.

Negative Factors

Very low net profitability

Near-zero net margins signal persistent profit conversion issues from sales to bottom line. Over months this constrains reinvestment, limits ability to build reserves, and increases vulnerability to cost shocks, undermining sustainable earnings improvement without operational fixes.

Declining free cash flow growth

A ~26% drop in FCF growth reduces financial flexibility for inventory, store investment, or digital initiatives. Structurally weaker cash generation limits capacity to fund strategic projects organically and heightens reliance on external financing during seasonal retail cycles.

Weak return on equity

ROE near zero indicates poor capital efficiency and limited shareholder value creation. Persistently weak ROE suggests the business struggles to convert equity into meaningful profits, a structural concern that can pressure strategic options and investor confidence over time.

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) shows a mixed financial performance with stable financials but low profitability. The income statement indicates effective cost management but thin margins and declining revenue. The balance sheet is stable with conservative leverage and a solid equity base. Cash flow is strong, with effective cash management, but free cash flow growth is negative.

Income Statement

Reitmans (Canada) has demonstrated a moderate level of stability in its income statement. The TTM Gross Profit Margin is approximately 56%, indicating effective cost management, although a decline from the previous year. The TTM Net Profit Margin is low at around 0.5%, reflecting thin profitability. Revenue has decreased by around 0.9% compared to the previous year, indicating a slight decline. The EBIT Margin is about 1.1%, and the EBITDA Margin stands at 8.8%, both of which suggest limited operational efficiency improvements are needed.

Balance Sheet

Reitmans (Canada) shows a stable balance sheet with a Debt-to-Equity Ratio of 0.55, indicating conservative leverage. The Return on Equity (ROE) is low at approximately 1.3%, reflecting modest profitability. The Equity Ratio stands at about 54.6%, denoting a solid equity base relative to assets, which is a positive indicator of financial stability.

Cash Flow

The cash flow position of Reitmans (Canada) is relatively strong. The TTM Free Cash Flow to Net Income Ratio is high, indicating strong cash conversion. The Operating Cash Flow to Net Income Ratio is robust, showing effective cash management. However, the Free Cash Flow Growth Rate is negative, highlighting a decline in free cash flow compared to the previous year.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 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: Positive
• Last Price: 2.15
• 50DMA: Positive
• 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 Positive. The current price of 2.15 is below the 20-day moving average (MA) of 2.33, below the 50-day MA of 2.29, and below the 200-day MA of 2.23, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 50.02 is Neutral, neither overbought nor oversold. The STOCH value of 38.59 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LNF	81 Outperform	C$1.96B	11.17	15.07%	3.11%	1.99%	31.36%
ATZ	75 Outperform	$14.45B	41.31	30.09%	―	26.51%	172.52%
TOY	68 Neutral	C$1.90B	24.38	6.75%	2.40%	3.71%	80.35%
GOOS	66 Neutral	$1.74B	65.22	6.07%	―	3.78%	-54.87%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RET	55 Neutral	C$110.09M	-278.57	-0.06%	―	-1.95%	-102.54%
ROOT	48 Neutral	C$127.44M	-4.14	-19.60%	―	4.87%	-1195.39%

Reitmans (Canada) Corporate Events

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.

RW&CO Launches Flagship Store as Part of Retail Transformation

RW&CO, a brand under Reitmans (Canada) Limited, has launched its first flagship store at Promenades Saint-Bruno, marking a significant step in its retail transformation strategy. This new store reflects RW&CO’s modernized visual identity and commitment to creating a purpose-driven retail environment, aiming to foster creativity and community while enhancing customer experiences.

The most recent analyst rating on (TSE:RET) stock is a Hold with a C$2.00 price target. To see the full list of analyst forecasts on Reitmans (Canada) stock, see the TSE:RET Stock Forecast page.

Reitmans Announces Executive Leadership Change as COO Jackie Tardif Departs

Reitmans (Canada) Limited announced the departure of Jackie Tardif, the Chief Operating Officer, effective December 1, 2025, following the elimination of her role. Tardif’s 31-year tenure at the company was marked by significant contributions to its strategic objectives and brand direction. Her departure signifies a shift in the company’s executive leadership structure as it approaches its 100th anniversary, potentially impacting its operational dynamics and stakeholder relationships.

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.