Sep 9, 2018
2 minutes
Reitmans sales down, continues to close stores
Sep 9, 2018
Reitmans sales were slightly down in the second quarter ended August 4, 2018, while the Canadian company continues to reduce its store count in order to adapt to the new retail environment.
The fashion retailer, and owner of brands like Addition Elle and Thyme Maternity, reported sales of $248.8 million during the quarter, as compared with $250.7 million for the three months ended July 29, 2017, despite a net reduction of 28 stores.
The company said sales were negatively impacted by approximately $6.1 million due to the second quarter of fiscal 2019 ending one week later than the second quarter of fiscal 2018.
E-commerce sales continued to be a bright spot for the fashion group, increasing 40.8 percent. Overall, same store sales were up 3.4 percent, while stores sales decreased 1.2 percent.
Net earnings for the second quarter of fiscal 2019 were $10 million ($0.16 basic and diluted earnings per share) as compared with $9.4 million net earnings ($0.15 basic and diluted earnings per share) for the second quarter of fiscal 2018.
Meanwhile, gross profit for the second quarter of fiscal 2019 decreased $0.7 million or 0.5 percent, to $137.6 million as compared with $138.3 million.
To date, sales for the six months ended August 4, 2018, are still down at $456.4 million, as compared with $457.8 million.
Net earnings for the year to date fiscal 2019 were $6.8 million ($0.11 basic and diluted earnings per share) as compared with net earnings of $2.8 million ($0.04 basic and diluted earnings per share) for the year to date fiscal 2018.
What’s more, the third quarter is shaping up to be a difficult one with sales for the month of August down 3.8 percent.
The company announced in March plans to close its Hyba retail locations, its affordable activewear line, across Canada. Hyba retail store sales represent less than 2 percent of the company's total annual sales.
The womenswear specialty apparel retailer currently operates 636 stores consisting of 268 Reitmans, 119 Penningtons, 88 Addition Elle, 84 RW & CO., 62 Thyme Maternity and 15 Hyba.
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