MONTREAL, Dec. 18, 2025 /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 third quarter of fiscal 2026. Unless otherwise indicated, all comparisons of results for the third quarter ended November 1, 2025, are to the third quarter ended November 2, 2024, and all comparisons of results for the year to date ended November 1, 2025, are to the year to date ended November 2, 2024. All dollar amounts are in Canadian currency.
Highlights
Net revenues grew 3.8% reaching $194.9 million, with one more store.
Comparable sales1 increased 2.1%.
Gross profit increased 1.9% to $109.6 million or 56.2% of net revenues.
Adjusted EBITDA1 was $5.6 million, $1.8 million higher than last year, increasing to 2.9% of net revenues, compared to 2.0% last year.
Net earnings were $0.9 million, or $ 0.02 per share, compared to $2.1 million last year, or $0.04 per share.
"Net revenues, gross profit, and adjusted EBITDA increased in the third quarter compared to the same period last year, as our five-year strategy continues to take shape," said Andrea Limbardi, President and CEO of RCL. "In the first quarter, we launched our strategy, Designed for the Future focused on three pillars: Drive Accelerated Brand Growth, Fuel Growth with Modernization, and Ignite High Performance. During the third quarter, the re-opening of our RW&CO Saint-Bruno flagship store was a significant milestone, as the brand has redefined its visual identity, in-store experience and customer approach to better align with the values and lifestyle of today's consumer. We also opened an RW&CO store in British Columbia, two Reitmans locations (Alberta and Nova Scotia), and two PENN. stores (Quebec and Nova Scotia). We are pleased by the results of our disciplined store investment strategy and its continued focus to deliver growth across our brands. In addition, strategic activities were undertaken towards restructuring and as a part of our broader transformation, resulting in related costs of $1.4 million for the period."
1 This is a Non-GAAP Financial Measure. See "Non-GAAP Financial Measures & Supplementary Financial Measures" for reconciliation of these measures.
Selected Financial Information
(in millions of dollars, except for gross profit % and earnings per share) (unaudited)
Third quarter
Year to date fiscal
2026
2025
Change
2026
2025
Change
Net revenues
$194.9
$187.7
3.8 %
$569.7
$568.9
0.1 %
Gross profit
$109.6
$107.6
1.9 %
$320.8
$328.8
(2.4 %)
Gross profit %
56.2 %
57.3 %
(110 bps)
56.3 %
57.8 %
(150 bps)
Selling, general and administrative expenses
$107.1
$103.7
3.3 %
$309.3
$304.6
1.5 %
Net earnings
$0.9
$2.1
(57.1 %)
$4.0
$16.3
(75.5 %)
Adjusted EBITDA1
$5.6
$3.8
47.4 %
$16.4
$28.0
(41.4 %)
Earnings per share:
Basic
$0.02
$0.04
(50.0 %)
$0.08
$0.33
(75.8 %)
Diluted
$0.02
$0.04
(50.0 %)
$0.08
$0.33
(75.8 %)
On November 1, 2025, RCL had working capital1 of $149.2 million, including cash of $119.4 million compared to working capital of $165.7 million, including cash of $158.1 million as at February 1, 2025, and working capital of $172.9 million, including cash of $123.1 million as at November 2, 2024. At the end of the third quarter, RCL had no significant long-term debt other than lease liabilities, and no amounts were drawn under the Company's bank credit facilities.
1 This is a Non-GAAP Financial Measure. See "Non-GAAP Financial Measures & Supplementary Financial Measures" for reconciliations of these measures.
Third Quarter Overview
Net revenues increased 3.8%, to $194.9 million, with one more store. Comparable sales1 were up 2.1% compared to last year mainly from improved transaction count.
Gross profit increased by $2.0 million to $109.6 million, or 56.2% of net revenues, representing a 110-basis point decrease from 57.3% in the third quarter last year, mainly due to increased promotion ...
