Reitmans (Canada) (RET) AI Stock Analysis

• Market Cap: C$109.22M
• Dividend Yield: N/A
• Average Volume (3M): 5.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• 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$2.00 ▼(-6.98% Downside)

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

Business Model Strength

The multi-channel retail model allows Reitmans to reach a broader customer base, enhancing its market presence and adaptability to consumer shopping preferences.

Gross Profit Margin

A strong gross profit margin suggests effective cost control and pricing strategies, which can support long-term profitability despite other financial challenges.

Balance Sheet Stability

A moderate debt-to-equity ratio reflects prudent financial management, providing stability and flexibility to navigate economic fluctuations.

Negative Factors

Profitability Challenges

Low net profit margins indicate difficulties in converting revenue into actual profit, which could hinder long-term financial health and investment capacity.

Decline in Free Cash Flow Growth

A decline in free cash flow growth can limit the company's ability to invest in growth opportunities and meet financial obligations, impacting future expansion.

Low Return on Equity

Low return on equity suggests inefficient use of equity capital, potentially deterring investors and affecting the company's ability to raise funds for growth.

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 2.32, below the 50-day MA of 2.23, and below the 200-day MA of 2.24, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 54.15 is Neutral, neither overbought nor oversold. The STOCH value of 31.43 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$1.93B	11.11	15.07%	3.11%	1.99%	31.36%
ATZ	78 Outperform	C$13.51B	47.17	26.49%	―	26.51%	172.52%
TOY	68 Neutral	C$2.01B	25.87	6.75%	2.40%	3.71%	80.35%
GOOS	66 Neutral	C$1.69B	63.33	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$109.22M	-283.93	-0.06%	―	-1.95%	-102.54%
ROOT	52 Neutral	C$123.13M	-4.00	-19.60%	―	4.87%	-1195.39%

Reitmans (Canada) Corporate Events

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.

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.

Reitmans Reports Stable Q2 Revenue Amid Strategic Growth Plans

Reitmans (Canada) Limited reported its second-quarter financial results for fiscal 2026, highlighting net revenues of $215.9 million, which remained stable despite having fewer stores and the closure of Thyme Maternity. The company experienced a slight decline in comparable sales by 1.3% and a decrease in gross profit margin by 220 basis points to 56.9%. Adjusted EBITDA was $21.4 million, impacted by foreign exchange losses and increased promotions. Despite these challenges, Reitmans is advancing its five-year strategic plan, focusing on brand growth through targeted investments, including the opening of a new RW&CO flagship store in Québec.