Reitmans (Canada) Limited, one of Canada’s leading specialty apparel retailers, has reported comparable sales growth of 3.5 per cent for its fiscal 2025 second quarter compared to the previous year.
In a news release on Thursday, the retailer said:
- Net revenues increased 0.4 per cent to $215.5 million
- Adjusted EBITDA increased 21.9 per cent to $23.4 million
- Gross profit margin increased 330 basis points to 59.1 per cent
- Results from operating activities (“ROA”) increased 13.8 per cent to $21.5 million
- Net earnings improved 17.2 per cent to $15.7 million
“We had an excellent second quarter and one of our best quarters of the past 10 years,” said Andrea Limbardi, President and CEO of RCL. “Despite operating 16 fewer stores compared to the same period last year, our net revenues were up slightly, underscoring how strongly our product offering resonated with our customers.
“Our teams successfully navigated supply chain challenges and avoided late deliveries, which ensured our stores had the right inventory at the right time. We read summer trends well, benefited from favourable weather, and successfully drove higher sales dollars and units per transaction. All of that, in addition to being less promotional during the quarter, contributed to improved gross margins and higher profitability.
“This is an exciting time for our business. We see a lot of opportunity for continued growth, selectively and strategically expanding our footprint in all three retail brands and doubling down on our menswear business. The ongoing modernization of our distribution facility remains on track and will ultimately help support our long-term vision. While the overall retail environment continues to be affected by economic uncertainty and logistics issues, we are well-positioned to drive profitable growth.”
Although Canadian consumers continued to tighten discretionary spending, net revenues were maintained mainly through improved sales dollar and units per transaction, said the retailer, adding that comparable sales, which include e-commerce net revenues, increased primarily due to increased sales per transaction.
The company operates 389 stores under three distinct banners consisting of 224 Reitmans, 85 PENN. Penningtons, and 80 RW&CO.
Randy Harris, President and Founder of Trendex North America, said, “Trendex in its Canadian Apparel Insights monthly newsletter noted that Reitmans Q2 2024 results were outstanding in light of consumer spending. However it needs to be noted that the retailers ecommerce sales fell 1.3% during the quarter and 4.8% in the first half of this year.”
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Trendex in its Canadian Apparel Insights monthly newsletter noted that Reitmans Q2 2024 results were outstanding in light of consumer spending .However it needs to be noted that the retailers ecommerce sales fell 1.3% during the quarter and 4.8% in the first half of this year.