Reitmans reports promising year-end results

Canadian apparel retailer Reitmans Limited announced promising year-end results on Thursday, following years of falling same-store sales. The owner of more than 600 clothing stores across six different banners such as Penningtons and Addition Elle, reported a 1.6 percent sales increase for the year ended January 28, 2017.

Sales climbed to $14.8 million, despite a net reduction of 90 stores. Same store sales increased 7.6 percent, while store sales and e-commerce sales jumped 4.6 percent and 50.7 percent respectively.

Gross profit for the year however still decreased 0.9 percent to $522.4 million, as compared to $527.1 million reported the previous year.

Results from operating activities for the year were $1.0 million as compared with a loss of $17.7 million seen in the same period last year. Reitmans announced plans early last year to reduce its operating costs in order to fuel long-term profitable growth. This included the elimination of 77 positions, which resulted in a reduction in severance expenses of $3.1 million in 2016. A decrease in store operating costs also resulted in approximately $10.7 million.

Net earnings for the year ended January 28, 2017 were $10.9 million ($0.17 basic and diluted earnings per share) as compared with a $24.7 million net loss ($0.39 basic and diluted loss per share) for the year ended January 30, 2016.

Sales for the three months ended January 28, 2017 were $248.4 million as compared with $242.2 million for the three months ended January 30, 2016. Net earnings for the fourth quarter were $0.3 million.

The womenswear specialty apparel retailer currently operates 677 stores consisting of 288 Reitmans, 127 Penningtons, 96 Addition Elle, 85 RW & CO., 62 Thyme Maternity and 19 Hyba.

Reitmans reports promising year-end results

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