Reitmans (Canada) Limited Reports First Quarter Financial Results

• Reitmans (Canada) Limited reported Q1 FY2026 results for the period ended May 2, 2026.
• Net revenues reached $160.1 million, up 0.8% year-over-year.
• Gross profit was $89.1 million (55.7% margin), stable year-over-year.
• SG&A expenses decreased 2.2% to $96.9 million, driven by workforce reductions and strategic cost-saving initiatives.
• Strategic transformation expenses were minimal at $0.2 million.
• Adjusted EBITDA improved to a loss of $5.4 million, a 49.1% improvement versus a $10.6 million loss in the prior year period.
• Net loss widened to $6.3 million, with basic and diluted EPS of ($0.13), improving from ($0.20) YoY.
• Comparable sales (inclusive of e-commerce) increased 0.3% year-over-year, driven by higher sales dollars per transaction.
• Retail store net revenues grew 2.9% despite operating with seven fewer stores year-over-year.
• Store network stands at 387 locations across three banners: 217 Reitmans, 85 PENN., and 85 RW&CO.
• Balance sheet remains robust: $126.0 million working capital, $101.9 million in cash, zero long-term debt, and no drawdowns on credit facilities.
• Share repurchases: 235,600 Class A non-voting shares cancelled for $0.5 million. Total repurchases since August 2024 total 745,200 shares. NCIB expires August 2026; renewal planned.

• The Q1 FY2026 results are routine and largely in line with a decelerating growth trajectory. The 0.3% comp sales print and the swing back to an EBITDA loss are minor negatives, but the 49.1% YoY EBITDA improvement and strong balance sheet provide a floor.
• The stock's -3.8% move into the print implies skepticism was already discounted. There is no asymmetric risk of a sharp downside move, nor is there a catalyst for a meaningful re-rating.
• The news does not fundamentally change the business model or capital structure. It confirms ongoing execution of store optimizations and cost controls, but fails to demonstrate a turnaround in top-line momentum.

Reitmans (Canada) Limited is a Canadian women's apparel retailer operating 387 stores across three banners: Reitmans, PENN., and RW&CO. The company focuses on affordable, fashion-forward apparel and accessories, targeting value-conscious consumers. Management is executing a five-year strategic plan centered on store network optimization, concept transformations, digital enhancements, and cost restructuring. The company is listed on the TSXV and remains under the control of the Reitman family group.