Quarter highlighted by 3.5% comparable sales growth and 21.9% adjusted EBITDA growth.
MONTREAL, Sept. 19, 2024 /CNW/ - Reitmans (Canada) Limited ("RCL" or the "Company") (TSXV:RET) (TSXV: RET-A), one of Canada's leading specialty apparel retailers, today reported its financial results for its fiscal 2025 second quarter. Unless otherwise indicated, all comparisons of results for the 13 weeks ended August 3, 2024 ("second quarter of 2025") are against results for the 13 weeks ended July 29, 2023 ("second quarter of 2024") and all comparisons of results for the 26 weeks ended August 3, 2024 ("year to date fiscal 2025") are against results for the 26 weeks ended July 29, 2023 ("year to date fiscal 2024"). All dollar amounts are in Canadian currency.
Second Quarter Highlights
Comparable sales increased 3.5%; net revenues increased 0.4% to $215.5 million
Adjusted EBITDA increased 21.9% to $23.4 million
Gross profit margin increased 330 basis points to 59.1%
Results from operating activities ("ROA") increased 13.8% to $21.5 million
Net earnings improved 17.2% to $15.7 million
"We had an excellent second quarter and one of our best quarters of the past ten 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," said Ms. Limbardi.
Select Financial Information
(in millions of dollars, except for gross profit % and earnings per share) (unaudited)
Second quarter
Year to date fiscal
2025
2024
Change
2025
2024
Change
Net revenues2
$215.5
$214.6
0.4 %
$381.3
$380.3
0.3 %
Gross profit
$127.3
$119.7
6.3 %
$221.3
$208.4
6.2 %
Gross profit %
59.1 %
55.8 %
330 bps
58.0 %
54.8 %
320 bps
Selling, general and administrative expenses2
$105.8
$100.8
5.0 %
$201.0
$193.1
4.1 %
ROA
$21.5
$18.9
13.8 %
$20.3
$15.3
32.7 %
Net earnings
$15.7
$13.4
17.2 %
$14.2
$9.5
49.5 %
Adjusted EBITDA1
$23.4
$19.2
21.9 %
$24.2
$17.9
35.2 %
Earnings per share:
Basic
$0.32
$0.27
18.5 %
$0.29
$0.20
45.0 %
Diluted
0.32
0.27
18.5 %
0.29
0.19
52.6 %
1
This is a Non-GAAP Financial Measure. See "Non-GAAP Financial Measures & Supplementary Financial Measures" for reconciliations of these measures.
2
For the fiscal 2025 second quarter and year to date periods, shipping revenues of $1.4 million and $2.0 million respectively, were reclassified from selling, general and administrative expenses to net revenues. See Note 16 of the unaudited condensed consolidated interim financial statements for the second quarter of 2025. For the fiscal 2024 second quarter and year to date periods, selling, general and administrative expenses were previously captioned selling, distribution and administrative expenses.
Balance Sheet Data
As at
(in millions of dollars) (unaudited)
August 3, 2024
July 29, 2023
February 3, 2024
