Reitmans (Canada) Limited, one of Canada’s leading specialty apparel retailers, released on Thursday its financial results for the fourth quarter of 2025, indicating the company is primed to expand and optimize its store footprint after recently finalizing its new five-year strategy focused on profitably driving accelerated brand growth, fueling growth with modernization, and igniting high performance.
The company operates 390 stores under three distinct banners consisting of 222 Reitmans, 86 PENN. Penningtons, and 82 RW&CO.
Highlights
- When excluding the 53rd week of the prior year, net revenues decreased 1.4% to $773.8 million for the year and 2.9% to $204.8 million for the quarter.
- Comparable sales, which include e-commerce net revenues, decreased 0.6% for the year and were essentially flat for the quarter.
- Gross profit % was up 200 basis points to 56.2% for the year and flat for the quarter at 51.9%.
- Adjusted EBITDA decreased $3.8 million to $25.4 million for the year and was a loss of $2.6 million for the quarter.
- Net earnings decreased $2.7 million to $12.1 million for the year and was a loss of $4.2 million for the quarter.
“This past holiday season, we had one of our strongest ever Black Friday and Cyber Monday performance, as well as a very good lead-up to Christmas and Boxing Week,” said Andrea Limbardi, President and CEO. “The success of those shopping events largely offset the impact of warmer weather in the first half of the quarter, which delayed consumers transitioning to winter apparel. Overall, our brands remained on point with Reitmans growth as a gifting destination and menswear at RW&CO continuing to perform very well as it had all year, aligned with our respective strategies.
“We accomplished a lot in fiscal 2025. We continued to innovate and evolve our supply chain operations, replacing existing sorters in our Montreal distribution centre with the SORTRAK© Inventory Systems to streamline our store inventory management. We’re pleased to share that the implementation was successful and has been completed. We also made the strategic decision to streamline our operations by closing Thyme Maternity and RCL Market in January of 2025. Finally, we finished the year with a remarkably strong balance sheet, including a significant cash position, very healthy inventory level, and no debt.
“Looking ahead, RCL is primed to expand and optimize our store footprint. We’ve recently finalized our new five-year strategy focused on profitably driving accelerated brand growth, fueling growth with modernization, and igniting high performance. We expect to reinvest over $100 million over the next five years on capital projects focused on growth. Our ambition is to reach $1 billion in annual net revenue with Adjusted EBITDA to grow to $60-70 million by the end of fiscal 2030. We have three unique brands, each with their own unique value propositions, and our objective is to amplify the power of our brands to deliver on-trend fashion that Canadians will love, for years to come.”
The company said that on February 1, 2025, it had working capital of $165.7 million, including cash of $158.1 million compared to working capital of $154.4 million, including cash of $116.7 million at the prior year end. As at February 1, 2025 and February 3, 2024, RCL had no long-term debt other than lease liabilities and no amounts were drawn under the company’s bank credit facilities.
