Reitmans (Canada) Limited (TSE:RET)
:RET
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Reitmans (Canada)
(RET)
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Rating:54Neutral
Price Target:
C$2.00
▼(-6.98% Downside)
Action:ReiteratedDate:04/11/26
The score is driven mainly by improved but still fragile financial performance, where earnings volatility and a recent drop in cash generation offset balance-sheet improvement. Technical indicators add downside pressure (below key moving averages with negative MACD), while valuation is only moderate given a high P/E and no dividend yield.
Positive Factors
Top-line recovery
Sustained revenue growth across 2024–2026 indicates restored customer demand and merchandising momentum. A durable top-line recovery improves scale to absorb fixed costs, supports inventory turnover and omnichannel investments, and creates a foundation for margin and profit recovery over months.
Negative Factors
Earnings volatility and recent loss
Material swings in profitability undermine forecasting and resource allocation. Persistent volatility elevates the risk that operating leverage will amplify downturns, strains stakeholder confidence, and makes multi‑period planning harder if margins do not sustainably recover.
Read all positive and negative factors
Positive Factors
Negative Factors
Top-line recovery
Sustained revenue growth across 2024–2026 indicates restored customer demand and merchandising momentum. A durable top-line recovery improves scale to absorb fixed costs, supports inventory turnover and omnichannel investments, and creates a foundation for margin and profit recovery over months.
Read all positive factors
Reitmans (Canada) (RET) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$97.37M
Dividend YieldN/A
Average Volume (3M)5.18K
Price to Earnings (P/E)30.6
Beta (1Y)0.29
Revenue Growth-1.95%
EPS Growth-102.54%
CountryCA
Employees6,812
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)-0.10
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 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, in...
How the Company Makes Money
Reitmans primarily makes money by designing, sourcing, and retailing women’s apparel and accessories under its brand banners, earning revenue from direct-to-consumer sales through physical stores and its online platforms. Its core revenue stream i...
Reitmans (Canada) Earnings Call Summary
Earnings Call Date:Jun 17, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jun 23, 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
56
Neutral
Balance Sheet
63
Positive
Cash Flow
60
Neutral
| Breakdown | Jan 2026 | Jan 2024 | Jan 2023 | Jan 2022 | Jan 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 776.85M | 773.80M | 794.69M | 661.95M | 533.36M |
| Gross Profit | 434.55M | 435.04M | 431.00M | 353.17M | 246.25M |
| EBITDA | 66.96M | 78.44M | 76.22M | 94.70M | 194.46M |
| Net Income | -916.00K | 12.14M | 14.81M | 158.26M | -172.22M |
Balance Sheet | |||||
| Total Assets | 553.46M | 574.09M | 490.75M | 314.27M | 397.23M |
| Cash, Cash Equivalents and Short-Term Investments | 150.96M | 158.12M | 116.65M | 25.50M | 77.92M |
| Total Debt | 161.55M | 155.40M | 137.59M | 81.94M | 123.22M |
| Total Liabilities | 266.94M | 277.66M | 211.73M | 130.45M | 375.55M |
| Stockholders Equity | 286.52M | 296.43M | 279.02M | 183.83M | 21.68M |
Cash Flow | |||||
| Free Cash Flow | 34.60M | 73.06M | 51.83M | -35.38M | 34.03M |
| Operating Cash Flow | 71.62M | 104.26M | 69.53M | -24.73M | 40.20M |
| Investing Cash Flow | -37.02M | -31.19M | -17.70M | -15.22M | -6.16M |
| Financing Cash Flow | -45.53M | -40.03M | -39.90M | -9.19M | -46.82M |
Reitmans (Canada) Technical Analysis
Negative
2.15
Price Trends
2.28
Negative
2.30
Negative
2.20
Negative
Market Momentum
-0.04
Negative
41.45
Neutral
11.54
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 2.15 is above the 20-day moving average (MA) of 2.13, below the 50-day MA of 2.28, and below the 200-day MA of 2.20, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 41.45 is Neutral, neither overbought nor oversold. The STOCH value of 11.54 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$156.07M | 25.19 | -21.42% | ― | 4.87% | -1195.39% | |
74 Outperform | C$14.73B | 23.21 | 29.12% | ― | 26.51% | 172.52% | |
67 Neutral | C$1.84B | 12.20 | 13.08% | 3.11% | 1.99% | 31.36% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | C$1.88B | -9.31 | -11.45% | 2.40% | 3.71% | 80.35% | |
58 Neutral | C$1.50B | 3.20 | 4.23% | ― | 3.78% | -54.87% | |
54 Neutral | C$97.37M | 30.61 | -0.06% | ― | -1.95% | -102.54% |
* Consumer Cyclical Sector Average
TSE:RET
Reitmans (Canada)
2.08
-0.17
-7.56%
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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...
Business Operations and StrategyExecutive/Board Changes
Reitmans (Canada) Overhauls Board Leadership as Stephen Reitman Becomes Chairman Emeritus
Positive
Feb 20, 2026
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...
Business Operations and StrategyExecutive/Board Changes
Reitmans Grants New Management Stock Options Under Long-Term Incentive Plan
Positive
Feb 18, 2026
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-base...
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.