Reitmans (Canada) Limited Reports Third Quarter Financial Results

Executive Summary

• Net revenues rose 3.8% YoY to C$194.9 M, driven by the addition of one new store and higher comparable sales (+2.1%).
• Adjusted EBITDA increased 47.4% YoY to C$5.6 M (2.9% of net revenues), reflecting stronger gross profit despite a slight decline in gross‑profit margin.
• Net earnings fell sharply to C$0.9 M ($0.02 EPS) from C$2.1 M ($0.04 EPS) YoY, primarily due to higher strategic transformation expenses and promotion activity.

Key Details

• Revenue & Store Activity – Net revenues C$194.9 M (up 3.8%); opened RW&CO flagship in Saint‑Bruno, an additional RW&CO store in BC, two Reitmans stores (Alberta, Nova Scotia) and two PENN. stores (Quebec, Nova Scotia).
• Comparable Sales – Increased 2.1% YoY, driven mainly by higher transaction counts.
• Gross Profit – C$109.6 M (+1.9% YoY), representing 56.2% of net revenues (down 110 bps from 57.3%).
• Adjusted EBITDA – C$5.6 M, up C$1.8 M YoY; adjusted EBITDA margin improved to 2.9% of revenue (from 2.0%).
• Net Earnings – C$0.9 M, down 57.1% YoY; EPS fell to $0.02 (basic & diluted).
• Strategic Transformation Expenses – $1.4 M incurred this quarter for restructuring and transformation initiatives.
• Working Capital – End‑quarter working capital C$149.2 M, cash balance C$119.4 M; no significant long‑term debt aside from lease liabilities; no drawdowns on bank credit facilities.
• Operating Expenses – SG&A expenses rose 3.3% YoY to C$107.1 M.
• Conference Call – Scheduled for Dec 19, 2025 at 8:30 a.m. ET (dial‑in numbers provided).

Notable Quotes

“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,” – Andrea Limbardi, President & CEO.

All figures are unaudited and presented in Canadian dollars.