SEDAR Interim Financial Statements

Unaudited Condensed Consolidated Interim Financial Statements November 1, 2025 and November 2, 2024 2 REITMANS (CANADA) LIMITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF EARNINGS (Unaudited) (in thousands of Canadian dollars except per share amounts) For the 13 weeks ended For the 39 weeks ended Notes November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024 Net revenues 16 $ 194,936 $ 187,670 $ 569,675 $ 568,960 Cost of goods sold 4 85,352 80,097 248,886 240,136 Gross profit 109,584 107,573 320,789 328,824 Selling, general and administrative expenses1 107,082 103,683 309,301 304,630 Results from operating activities 2,502 3,890 11,488 24,194 Finance income 13 1,215 1,496 3,045 5,329 Finance costs 13 (2,478) (2,665) (8,994) (7,465) Earnings before income taxes 1,239 2,721 5,539 22,058 Income tax expense 12 (375) (655) (1,547) (5,750) Net earnings $ 864 $ 2,066 $ 3,992 $ 16,308 Earnings per share: 14 Basic $ 0.02 $ 0.04 $ 0.08 $ 0.33 Diluted 0.02 0.04 0.08 0.33 1 Included in selling, general and administrative expenses for the 13 and 39 weeks ended November 1, 2025, are strategic transformation expenses for $1,445 related to transition-related personnel expenses and consulting fees. The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements. 3 REITMANS (CANADA) LIMITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (in thousands of Canadian dollars) For the 13 weeks ended For the 39 weeks ended Notes November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024 Net earnings $ 864 $ 2,066 $ 3,992 $ 16,308 Other comprehensive income (loss) Items that are or may be reclassified subsequently to net earnings: Cash flow hedges (net of tax of $418 and $2,521 for the 13 and 39 weeks ended November 1, 2025, respectively; net of tax of $998 and $1,162 for the 13 and 39 weeks ended November 2, 2024, respectively) 10 1,161 2,766 (6,998) 3,222 Items that will not be reclassified to net earnings: Net actuarial loss on defined benefit plan (net of tax of $47 and $147 for the 13 and 39 weeks ended November 2, 2024, respectively) 6 - (127) - (406) Total other comprehensive income (loss) 1,161 2,639 (6,998) 2,816 Total comprehensive income (loss) $ 2,025 $ 4,705 $ (3,006) $ 19,124 The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements. 4 REITMANS (CANADA) LIMITED CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (Unaudited) (in thousands of Canadian dollars) Notes November 1, 2025 November 2, 2024 February 1, 2025 ASSETS CURRENT ASSETS Cash $ 119,397 $ 123,073 $ 158,116 Trade and other receivables 8,015 6,567 6,088 Derivative financial asset 17 1,680 5,956 12,286 Inventories 4 129,603 141,305 132,877 Prepaid expenses and other assets 13,571 17,385 12,714 Pension asset 6 - 1,286 - Total Current Assets 272,266 295,572 322,081 NON-CURRENT ASSETS Derivative financial asset 17 387 - - Property and equipment 99,270 77,644 89,126 Intangible assets 5,670 2,029 1,639 Right-of-use assets 5 146,427 138,198 140,120 Deferred income taxes 22,263 20,496 21,120 Total Non-Current Assets 274,017 238,367 252,005 TOTAL ASSETS $ 546,283 $ 533,939 $ 574,086 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Trade and other payables 8 $ 75,111 $ 78,732 $ 109,671 Derivative financial liability 17 192 - - Deferred revenue 9 10,454 9,916 12,398 Income taxes payable 243 582 191 Current portion of lease liabilities 5 --- 37,127 33,483 34,145 Total Current Liabilities 123,127 122,713 156,405 NON-CURRENT LIABILITIES Trade and other payables 11 241 - - Lease liabilities 5 128,226 114,667 121,252 Total Non-Current Liabilities 128,467 114,667 121,252 SHAREHOLDERS' EQUITY Share capital 10 31,136 28,787 29,108 Contributed surplus 11,170 11,435 11,456 Retained earnings 251,528 252,264 248,012 Accumulated other comprehensive income 10 855 4,073 7,853 Total Shareholders' Equity 294,689 296,559 296,429 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 546,283 $ 533,939 $ 574,086 The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements. 5 REITMANS (CANADA) LIMITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited) (in thousands of Canadian dollars) Notes Share Capital Contributed Surplus Retained Earnings Accumulated Other Comprehensive Income Total Shareholders’ Equity Balance as at February 2, 2025 $ 29,108 $ 11,456 $ 248,012 $ 7,853 $ 296,429 Net earnings - - 3,992 - 3,992 Total other comprehensive loss 10 - - - (6,998) (6,998) Total comprehensive income (loss) for the period - - 3,992 (6,998) (3,006) Share options exercised 10 2,264 (647) - - 1,617 Share repurchase program under ASPP 10 (236) - (476) - (712) Share-based compensation costs 11 - 361 - - 361 Total contributions by (distributions to) owners of the Company 2,028 (286) (476) - 1,266 Balance as at November 1, 2025 $ 31,136 $ 11,170 $ 251,528 $ 855 $ 294,689 Balance as at February 4, 2024 $ 28,292 $ 11,207 $ 238,668 $ 851 $ 279,018 Net earnings - - 16,308 - 16,308 Total other comprehensive (loss) income 10 - - (406) 3,222 2,816 Total comprehensive income for the period - - 15,902 3,222 19,124 Share options exercised 10 566 (158) - - 408 Share repurchase program under ASPP 10 (71) - (2,306) - (2,377) Share-based compensation costs 11 - 386 - - 386 Total contributions by (distributions to) owners of the Company 495 228 (2,306) - (1,583) Balance as at November 2, 2024 $ 28,787 $ 11,435 $ 252,264 $ 4,073 $ 296,559 The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements. 6 REITMANS (CANADA) LIMITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (Unaudited) (in thousands of Canadian dollars) For the 13 weeks ended For the 39 weeks ended Notes November 1, 2025 November 2, 2024November 1, 2025 November 2, 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net earnings $ 864 $ 2,066 $ 3,992 $ 16,308 Adjustments for: Depreciation, amortization and net impairment losses on property and equipment and intangible assets 4,134 3,280 12,337 10,907 Depreciation on right-of-use assets 5 10,361 10,074 30,720 29,183 Share-based compensation costs 11 103 156 601 386 Net change in transfer of realized (gain) loss on cashflow hedges to inventory (300) (68) 891 (190) Foreign exchange gain (2,228) (655) (3,530) (4,487) Interest on lease liabilities 13 2,478 2,500 7,497 7,465 Interest income 13 (999) (1,496) (3,045) (4,230) Income tax expense 375 655 1,547 5,750 14,788 16,512 51,010 61,092 Changes in: Trade and other receivables (327) (406) (2,144) (3,223) Inventories (3,336) (3,771) 3,274 (19,280) Prepaid expenses and other assets 5,004 2,112 (857) (1,044) Trade and other payables (6,902) 1,291 (30,186) 15,490 Pension asset - (686) - (690) Deferred revenue (289) 269 (1,944) (2,023) 8,938 15,321 19,153 50,322 Interest received 1,083 1,482 3,262 4,428 Income taxes paid - - (117) (9 --- 7) Net cash flows from operating activities 10,021 16,803 22,298 54,653 CASH FLOWS USED IN INVESTING ACTIVITIES Additions to property and equipment and intangible assets 15 (10,683) (7,002) (30,955) (20,069) Cash flows used in investing activities (10,683) (7,002) (30,955) (20,069) CASH FLOWS USED IN FINANCING ACTIVITIES Payment of lease liabilities 5 (7,301) (11,510) (34,588) (32,860) Purchase of Class A non-voting shares for cancellation 10 (171) (226) (644) (226) Proceeds from issue of share capital 10 - 318 1,617 408 Cash flows used in financing activities (7,472) (11,418) (33,615) (32,678) FOREIGN EXCHANGE GAIN ON CASH HELD IN FOREIGN CURRENCY 2,241 653 3,553 4,514 NET (DECREASE) INCREASE IN CASH (5,893) (964) (38,719) 6,420 CASH, BEGINNING OF THE PERIOD 125,290 124,037 158,116 116,653 CASH, END OF THE PERIOD $ 119,397 $ 123,073 $ 119,397 $ 123,073 Supplementary cash flow information (note 15) The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements. 7 REITMANS (CANADA) LIMITED NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited) 1. REPORTING ENTITY Reitmans (Canada) Limited (the “Company”) is a company domiciled in Canada and is incorporated under the Canada Business Corporations Act. The address of the Company’s registered office is 155 Wellington Street West, 40th Floor, Toronto, Ontario M5V 3J7. The principal business activity of the Company is the sale of women’s wear. The Company’s issued and outstanding Common and Class A shares are listed on the Toronto Stock Venture Exchange under the symbol “RET.V” and “RET-A.V”, respectively. 2. BASIS OF PRESENTATION a) Statement of Compliance These unaudited condensed consolidated interim financial statements have been prepared in accordance with IFRS Accounting Standards, as issued by the International Accounting Standards Board on a basis consistent with those accounting policies followed by the Company in the most recent audited annual consolidated financial statements. These unaudited condensed consolidated interim financial statements have been prepared under IFRS in accordance with IAS 34, Interim Financial Reporting. Certain information, in particular the accompanying notes, normally included in the audited annual consolidated financial statements prepared in accordance with IFRS has been omitted or condensed. Accordingly, these unaudited condensed consolidated interim financial statements do not include all the information required for full annual financial statements, and, therefore, should be read in conjunction with the audited annual consolidated financial statements and the notes thereto for the year ended February 1, 2025. These unaudited condensed consolidated interim financial statements were authorized for issue by the Board of Directors on December 18, 2025. b) Basis of Measurement These unaudited condensed consolidated interim financial statements have been prepared on the historical cost basis except for the following material items: ? lease liabilities are initially measured at the present value of the lease payments that are not paid at the lease commencement date; ? liabilities for cash-settled share-based payment arrangements are measured in accordance with IFRS 2, Share-Based Payment; and ? derivative financial instruments measured at fair value. 8 c) Seasonality of Interim Operations The retail business is seasonable and the results of operations for any interim period are not nec --- essarily indicative of the results of operation for the full fiscal year or any future period. d) Functional and Presentation Currency These unaudited condensed consolidated interim financial statements are presented in Canadian dollars, which is the Company’s functional currency. All financial information presented in Canadian dollars has been rounded to the nearest thousand, except per share amounts. e) Estimates, Judgments and Assumptions The preparation of the unaudited condensed consolidated interim financial statements in accordance with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, the disclosure of contingent assets and contingent liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the period. These estimates and assumptions are based on historical experience, other relevant factors and expectations of the future and are reviewed regularly. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Actual results may differ from these estimates. In preparing these unaudited condensed consolidated interim financial statements, the significant judgements made by management in applying the Company’s accounting policies and key sources of estimation uncertainty were the same as those applied and described in the Company’s audited annual consolidated financial statements for the year ended February 1, 2025. 9 3. MATERIAL ACCOUNTING POLICIES The material accounting policies as disclosed in the Company’s audited annual consolidated financial statements for the year ended February 1, 2025 have been applied consistently in the preparation of these unaudited condensed consolidated interim financial statements. New standards and amendments not yet adopted New standards and amendments to existing standards have been issued by the IASB, which are mandatory but not yet effective for the 39 weeks ended November 1, 2025. The following new standards and amendments have not been applied in preparing these unaudited condensed consolidated interim financial statements. Presentation and Disclosure in Financial Statements (IFRS 18) On April 9, 2024, the IASB issued IFRS 18 Presentation and Disclosure in Financial Statements to improve reporting of financial performance. IFRS 18 replaces IAS 1 Presentation of Financial Statements. The standard introduces new required subtotals in the statement of earnings and disclosure requirements for management-defined performance measures. IFRS 18 applies for annual reporting periods beginning on or after January 1, 2027. Early adoption is permitted. The Company is currently evaluating the impact from the adoption of IFRS 18. 4. INVENTORIES During the 13 and 39 weeks ended November 1, 2025, inventories recognized as cost of goods sold amounted to $82,482 and $244,831, respectively ($77,425 and $235,534 for the 13 and 39 weeks ended November 2, 2024, respectively). In addition, for the 13 and 39 weeks ended November 1, 2025, the Company recorded $2,870 and $4,055, respectively, related to the write-downs of inventories as a result of net realizable value being lower than cost, which were recognized in cost of goods sold ($2,672 and $4,602 for the 13 and 39 weeks ended November 2, 2024, respectively). No inventory write-downs recognized in previous periods --- were reversed. Included in inventories is a return asset for the right to recover returned goods for $1,995 as at November 1, 2025 (November 2, 2024 - $2,125; February 1, 2025 - $1,936). 10 5. LEASES The Company renews leases of its retail locations as part of its normal course of business. The following tables represent changes in right-of-use assets and lease liabilities: Right-of-use assets For the 13 weeks ended For the 39 weeks ended November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024 Balance at the beginning of the period $ 145,512 $ 132,000 $ 140,120 $ 131,457 Lease additions 11,332 16,428 37,378 36,499 Lease modifications (56) (156) (351) (575) Depreciation (10,361) (10,074) (30,720) (29,183) Balance at the end of the period $ 146,427 $ 138,198 $ 146,427 $ 138,198 Lease liabilities For the 13 weeks ended For the 39 weeks ended November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024 Balance at the beginning of the period $ 158,891 $ 140,890 $ 155,397 $ 137,594 Lease additions 11,332 16,428 37,378 36,499 Lease modifications (47) (158) (331) (548) Payment of lease liabilities (7,301) (11,510) (34,588) (32,860) Interest expense (note 13) 2,478 2,500 7,497 7,465 Balance at the end of the period $ 165,353 $ 148,150 $ 165,353 $ 148,150 November 1, 2025 November 2, 2024 Current portion of lease liabilities $ 37,127 $ 33,483 Non-current portion of lease liabilities 128,226 114,667 Total lease liabilities $ 165,353 $ 148,150 6. PENSION ASSET During the year ended February 1, 2025, the Company’s defined benefit pension plan (the “Plan”) was dissolved and wound-up. The Plan was replaced by a defined contribution pension plan. During the 13 and 39 weeks ended November 1, 2025, the Company recognized a recovery of $128 and a loss of $206, respectively, of administrative costs related to the windup of the Plan in selling, general and administrative expenses. The Company recognized an actuarial loss of $174 and $553 in other comprehensive income for the 13 and 39 weeks ended November 2, 2024, respectively, and had subsequently reclassified the loss from accumulated other comprehensive income to retained earnings based on an updated valuation to the net pension asset. During the 13 and 39 weeks ended November 2, 2024, as part of the Plan windup process, the Company annuitized and transferred to a third party insurer, the portion of the pension asset related to retirees, beneficiaries and active members who elected an immediate or deferred pension. As a result, for the 13 and 39 weeks ended November 2, 2024, the Company recognized a settlement gain of $749 in selling, general and administrative expenses. 11 7. REVOLVING CREDIT FACILITY The Company has a senior secured revolving credit agreement with a Canadian financial institution, which consists of a $50,000 revolving credit facility. The Company can borrow funds in Canadian or US dollars at prime, base, the Canadian Overnight Repo Rate Average (“CORRA”) or the Secured Overnight Financing Rate (“SOFR”). The revolving credit facility bears interest at the prime or base rate, and the CORRA or SOFR rate plus 1.75%. Up to $25,000 (or its U.S. dollar equivalent) of the facility can be withdrawn through secured letters of credit. As at November 1, 2025, November 2, 2024 and February 1, 2025, no amount was drawn under the revolving credit facility and as at November 1, 2025, no amount was committed for secured letters of credit (November 2, 2024 – $1,000, February 1, 2025 --- – $1,000). The facility is secured by certain of the Company’s assets including trade receivables, inventories and property and equipment. The Company is required to maintain certain financial covenants related to this revolving credit facility. As at November 1, 2025, November 2, 2024 and February 1, 2025, the Company was in compliance with all financial covenants. 8. TRADE AND OTHER PAYABLES November 1, 2025 November 2, 2024 February 1, 2025 Trade payables $ 41,514 $ 29,105 $ 61,572 Personnel liabilities 17,421 18,385 22,415 Other non-trade payables 9,111 23,778 19,835 Refund liability 5,086 5,313 3,697 Financial liability under ASPP (note 10) 2,220 2,151 2,152 $ 75,352 $ 78,732 $ 109,671 Non-current portion (note 11) $ 241 $ - $ - Current portion of trade and other payables 75,111 78,732 109,671 $ 75,352 $ 78,732 $ 109,671 9. DEFERRED REVENUE November 1, 2025 November 2, 2024 February 1, 2025 Loyalty points and awards granted under loyalty programs $ 1,239 $ 1,360 $ 307 Unredeemed gift cards 9,215 8,556 12,091 $ 10,454 $ 9,916 $ 12,398 12 10. SHARE CAPITAL AND OTHER COMPONENTS OF EQUITY For the 39 weeks ended November 1, 2025 November 2, 2024 Number of shares (in 000’s) Carrying amount Number of shares (in 000’s) Carrying amount Common shares Balance at beginning and end of the period 13,440 $ 482 13,440 $ 482 Class A non-voting shares Balance at beginning of the period 36,135 28,626 35,856 27,810 Shares issued pursuant to exercise of share options (note 11) 1,078 2,264 272 566 Shares purchased for cancellation under ASPP (292) (236) (91) (71) Balance at end of the period 36,921 30,654 36,037 28,305 Total share capital 50,361 $ 31,136 49,477 $ 28,787 Authorized Share Capital The Company has authorized for issuance an unlimited number of Common shares and Class A non- voting shares. Both Common shares and Class A non-voting shares have no par value. All issued shares are fully paid. The Common shares and Class A non-voting shares of the Company rank equally and pari passu with respect to the right to receive dividends and upon any distribution of the assets of the Company. However, in the case of share dividends, the holders of Class A non-voting shares shall have the right to receive Class A non-voting shares and the holders of Common shares shall have the right to receive Common shares. Issuance of Class A Non-Voting Shares During the 39 weeks ended November 1, 2025, 1,078,333 (211,667 and 271,667, respectively, for 13 and 39 weeks ended November 2, 2024) Class A non-voting shares were issued from the exercise of vested share options arising from the Company’s share option program (note 11). During the 39 weeks ended November 1, 2025, the amounts credited to share capital from the exercise of share options include a cash consideration of $1,617, respectively, with an ascribed value from contributed surplus of $647. During the 13 and 39 weeks ended November 2, 2024, the amounts credited to share capital from the exercise of share options include a cash consideration of $318 and $408, respectively, with an ascribed value from contributed surplus of $125 and $158, respectively. 13 Purchase of shares for cancellation under normal course issuer bid Under a normal course issuer bid (“NCIB”) approved with the TSX Venture Exchange, the Company may acquire up to an aggregate of 3,700,472 Class A non-voting shares of the Company (“Shares”) over the 12-month period commencing on August 5, 2025, and ending on August 4, 2026, representing approx --- imately 10% of the public float of the Shares. Additionally, under the NCIB, the Company may not acquire more than 2% of the public float of the Shares, representing 740,094 Shares, in any 30-day period. In connection with the NCIB, the Company entered into an automatic share purchase plan (“ASPP”) with a designated broker to facilitate the purchase of Shares under the NCIB during times when the Company would ordinarily not be permitted to purchase Shares during self-imposed blackout periods. During the 13 and 39 weeks ended November 1, 2025, under the NCIB and ASPP, the Company purchased for cancellation 83,600 and 292,300 Shares, respectively, having a carrying amount of $69 and $236, respectively, for an aggregate cash consideration of $171 and $644, respectively. During the 13 and 39 weeks ended November 1, 2025, the premium over of the carrying amount of $102 and $408, respectively, was charged to retained earnings. From the inception of the NCIB, on August 5, 2024, to November 1, 2025, the Company has purchased for cancellation a total of 474,200 Shares. During the 13 and 39 months ended November 2, 2024, under the NCIB and ASPP, the Company purchased for cancellation 91,100 Shares having a carrying amount of $71 for an aggregate cash consideration of $226. The premium over of the carrying amount of $155 for the 13 and 39 weeks ended November 2, 2024, was charged to retained earnings. As at November 1, 2025, a financial liability with a corresponding amount charged to retained earnings of $2,220 (November 2, 2024 - $2,151; February 1, 2025 - $2,152) was recognized in trade and other payables. This liability represents the maximum value of Shares authorized to be repurchased by the designated broker under the renewed ASPP during self-imposed blackout periods. Subsequent to November 1, 2025, under the terms and conditions of the renewed NCIB, the Company purchased for cancellation 35,400 Shares for an aggregate cash consideration of $73. 14 Accumulated Other Comprehensive Income (Loss) (“AOCI”) AOCI is comprised of the following: Cash Flow Hedges Balance at February 2, 2025 $ 7,853 Net change in fair value of cash flow hedges (net of tax of $1,094) (3,040) Transfer to cost of inventory (net of tax of $1,427) (3,958) Balance at November 1, 2025 $ 855 Balance at February 4, 2024 $ 851 Net change in fair value of cash flow hedges (net of tax of $2,006) 5,563 Transfer to cost of inventory (net of tax of $844) (2,341) Balance at November 2, 2024 $ 4,073 Dividends No dividends were declared or paid during the 13 and 39 weeks ended November 1, 2025 and November 2, 2024. 15 11. SHARE-BASED PAYMENTS Under the share option plan, the Company can issue up to 4,300,000 Class A non-voting shares pursuant to the exercise of options. Further details regarding the share option plan can be found in the Company’s audited annual consolidated financial statements for the year ended February 1, 2025. Service-based share options The Company grants service-based share options for which service conditions are expected to be satisfied. Estimated fair value of options on the grant date was determined using the Black Scholes option pricing model based on the following assumptions (amounts in dollars): For the 39 weeks ended November 1, 2025 25,000 Share Options Granted April 10, 2025 Expected share option life 2.7 years Risk-free interest rate 2.61% Expected share price volatility 29.89% Dividend yield - Share price at grant date $2.03 Exercise price $2.03 Wei --- ghted average fair value $0.44 For the 13 and 39 weeks ended November 2, 2024 75,000 Share Options Granted September 19, 2024 1,109,917 Share Options Granted June 26, 2024 Weighted average expected share option life 2.7 years 3.0 years Weighted average risk-free interest rate 2.84% 3.88% Weighted average expected share price volatility 36.83% 38.96% Dividend yield - - Share price at grant date $2.40 $2.42 Exercise price $2.40 $2.42 Weighted average fair value $0.62 $0.71 The expected volatility is based on the historical volatility of the Company. 16 The changes in outstanding service-based share options were as follows: For the 13 weeks ended For the 39 weeks ended November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024 Options (in 000’s) Weighted Average Exercise Price Options (in 000’s) Weighted Average Exercise Price Options (in 000’s) Weighted Average Exercise Price Options (in 000’s) Weighted Average Exercise Price Outstanding, at beginning of period 1,408 $ 2.56 2,466 $ 2.81 1,890 $ 2.34 1,697 $ 3.55 Granted - - 75 2.40 25 2.03 1,185 2.42 Exercised (note 10) - - (162) 1.50 (408) 1.50 (222) 1.50 Forfeited and expired (13) 2.42 (56) 2.16 (112) 2.60 (337) 5.36 Outstanding, at end of period 1,395 $ 2.56 2,323 $ 2.90 1,395 $ 2.56 2,323 $ 2.90 Options exercisable, at end of period 507 $ 2.62 642 $ 4.31 507 $ 2.62 642 $ 4.31 During the 13 and 39 weeks ended November 1, 2025, the Company recognized $81 and $361, respectively, of compensation costs related to the Company’s service-based share options with a corresponding credit to contributed surplus ($156 and $386, respectively, for the 13 and 39 weeks ended November 2, 2024). Market-condition share options During the 13 and 39 weeks ended November 1, 2025 and November 2, 2024, no market-condition share options were granted. The changes in outstanding market-condition share options were as follows: For the 13 weeks ended For the 39 weeks ended November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024 Options (in 000’s) Weighted Average Exercise Price Options (in 000’s) Weighted Average Exercise Price Options (in 000’s) Weighted Average Exercise Price Options (in 000’s) Weighted Average Exercise Price Outstanding, at beginning of period - $ - 830 $ 1.50 670 $ 1.50 830 $ 1.50 Exercised (note 10) - - (50) 1.50 (670) 1.50 (50) 1.50 Outstanding and exercisable, at end of period - $ - 780 $ 1.50 - $ - 780 $ 1.50 During the 13 and 39 weeks ended November 1, 2025 and November 2, 2024, no compensation costs related to the Company’s market-condition share options were recognized. 17 Deferred Share Units (cash-settled) On April 10, 2025, the Board of Directors of the Company approved the adoption of a Deferred Share Unit (“DSU”) plan available to non-employee members of the Board of Directors. In accordance with the DSU plan, the number of DSUs granted by the Board of Directors is based on the weighted average share price of the Company’s Class A non-voting shares for the five trading days preceding the grant date. DSUs become redeemable for cash at the time when an eligible Director ceases to be a Director of the Company for an amount based on the weighted average share price of the Company’s Class A non- voting shares at the redemption date. During the 39 weeks ended November 1, 2025, the Company issued the following DSUs at a grant price based on the weighted average share price of the Company’s Class A non-voting shares for the five trading days preceding the grant date: A --- pril 10, 2025 June 17, 2025 Amount of DSUs 100,961 13,636 Grant price $2.08 $2.20 The changes in outstanding DSUs were as follows: For the 13 weeks ended November 1, 2025 For the 39 weeks ended November 1, 2025 DSUs (in 000’s) DSUs (in 000’s) Outstanding, at beginning of the period 115 - Granted - 115 Outstanding, at end of period 115 115 Based on the closing market share price of $2.10 of the Company’s Class A non-voting shares as at November 1, 2025, the Company recognized a share-based compensation expense related to the outstanding DSUs of $22 and $241, respectively, for the 13 and 39 weeks ended November 1, 2025, in selling, general and administrative expenses with a corresponding credit in non-current other payables. No Performance Share Units (“PSUs”) were granted and no share-based compensation costs related to PSUs were recognized during the 13 and 39 weeks ended November 1, 2025 and November 2, 2024. Restricted Share Units (cash-settled) Subsequent to November 1, 2025, the Board of Directors of the Company approved the adoption of a Restricted Share Unit (“RSU”) plan available to certain executives. In accordance with the RSU plan, the number of RSUs granted by the Board of Directors is based on the market value of the Company’s Class A non-voting shares for the five-trading day-period before the grant date. RSUs vest equally over a three-year period on the anniversary of the grant date and require continued employment with the Company through each vesting date. RSUs become redeemable for cash each vesting date based on the market value of the Company’s Class A non-voting shares for the five-trading day-period before the vesting date. 18 12. INCOME TAX In the interim periods, the income tax provision is based on an estimate of the earnings that will be generated in a full year. The estimated average annual effective income tax rates are re-estimated at each interim reporting date, based on full year projections of earnings. To the extent that forecasts differ from actual results, adjustments are recognized in subsequent periods. 13. FINANCE INCOME AND FINANCE COSTS For the 13 weeks ended For the 39 weeks ended November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024 Interest income $ 999 $ 1,496 $ 3,045 $ 4,230 Foreign exchange gain 216 - - 1,099 Finance income 1,215 1,496 3,045 5,329 Interest expense on lease liabilities 2,478 2,500 7,497 7,465 Foreign exchange loss - 165 1,497 - Finance costs 2,478 2,665 8,994 7,465 Net finance costs $ (1,263) $ (1,169) $ (5,949) $ (2,136) 14. EARNINGS PER SHARE The number of shares (in thousands) used in the basic and diluted earnings per share calculations is as follows: For the 13 weeks ended For the 39 weeks ended November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024 Weighted average number of shares – basic 50,374 49,359 50,140 49,324 Dilutive effect of stock options granted - 545 91 543 Weighted average number of shares – diluted 50,374 49,904 50,231 49,867 As at November 1, 2025, 1,395 (November 2, 2024 – 1,820) share options were excluded from the calculation of diluted earnings per share as these options were deemed to be anti-dilutive. 19 15. SUPPLEMENTARY CASH FLOW INFORMATION November 1, 2025 November 2, 2024 February 1, 2025 Non-cash transactions: Additions to property and equipment and intangible assets included in trade and other payables $ 874 $ 1,878 $ 5,316 Net impairment losses As at November 1, 2025, the Company tested for impairment certain cash- --- generating units (“CGUs”) for which there were indications that their carrying amounts may not be recoverable, which resulted in $82 and $548 of impairment losses recognized related to property and equipment for the 13 and 39 weeks ended November 1, 2025, respectively ($99 and $1,068 for the 13 and 39 weeks ended November 2, 2024, respectively). During the 13 and 39 weeks ended November 1, 2025 and November 2, 2024, no asset impairment losses were reversed. Net impairment losses have been recorded in selling, general and administrative expenses. 16. NET REVENUES Net revenues disaggregated for retail stores and e-commerce is as follows: For the 13 weeks ended For the 39 weeks ended November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024 Retail stores $ 148,104 $ 141,318 $ 430,898 $ 429,704 E-commerce 46,832 46,352 138,777 139,256 Net revenues $ 194,936 $ 187,670 $ 569,675 $ 568,960 17. FINANCIAL INSTRUMENTS Derivative financial instruments The Company entered into forward contracts with its bank on the U.S. dollar extending over a period of up to two years. Details of the foreign exchange contracts outstanding, all of which are designated as cash flow hedges are as follows: Average Strike Price Notional Amount in U.S. Dollars Derivative Financial Asset Derivative Financial Liability Net November 1, 2025 $ 1.374 $ 144,000 $ 2,067 $ 192 $ 1,875 November 2, 2024 $ 1.346 $ 158,000 $ 5,956 $ - $ 5,956 February 1, 2025 $ 1.347 $ 134,000 $ 12,286 $ - $ 12,286 Accounting classification and fair values The following table shows the carrying amounts and fair values of the financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of the fair value. The Company has determined that the fair value of its current financial assets and liabilities (other than those included below) approximates their respective carrying amounts as at the reporting dates because of the short-term nature of those financial instruments. 20 November 1, 2025 Carrying Amount Fair Value Fair Value through Profit or Loss Fair Value of Hedging Instruments Amortized Cost Total Level 1 Level 2 Total Financial assets measured at fair value through profit or loss Derivative financial asset (current and non-current) $ - $ 2,067 $ - $ 2,067 $ - $ 2,067 $ 2,067 Financial liabilities measured at fair value through profit or loss Derivative financial liability (current and non-current) $ - $ 192 $ - $ 192 $ - $ 192 $ 192 November 2, 2024 Carrying Amount Fair Value Fair Value through Profit or Loss Fair Value of Hedging Instruments Amortized Cost Total Level 1 Level 2 Total Financial assets measured at fair value through profit or loss Derivative financial asset $ - $ 5,956 $ - $ 5,956 $ - $ 5,956 $ 5,956 February 1, 2025 Carrying Amount Fair Value Fair Value through Profit or Loss Fair Value of Hedging Instruments Amortized Cost Total Level 1 Level 2 Total Financial assets measured at fair value through profit or loss Derivative financial asset $ - $ 12,286 $ - $ 12,286 $ - $ 12,286 $ 12,286 There were no transfers between levels of the fair value hierarchy for the periods ended November 1, 2025, November 2, 2024 and February 1, 2025. 18. FINANCIAL RISK MANAGEMENT The Company’s risk management policies are established to identify and analyze the risks faced by the Company, --- to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. There have been no significant changes in the Company’s risk exposures during the 13 and 39 weeks ended November 1, 2025 from those disclosed in the Company’s audited annual consolidated financial statements for the year ended February 1, 2025.