Reitmans (Canada) Limited Reports Second Quarter Financial Results

Executive Summary

• Reitmans (Canada) Limited reported its second quarter financial results for fiscal 2026, showing flat net revenues despite the closure of Thyme Maternity and three fewer stores.
• Net earnings declined significantly year-over-year, dropping to $13.1 million ($0.26 per share) from $15.7 million ($0.32 per share) in the prior year, driven by lower gross margins and unfavorable foreign exchange impacts.
• The company announced a renewed Normal Course Issuer Bid (NCIB) allowing for the repurchase of up to 10% of its public float, and highlighted strategic progress including store renovations and a new flagship opening.

Key Details

• Net Revenues: $215.9 million for Q2 2026, essentially flat compared to $215.5 million in Q2 2025 (0.2% increase), despite operating three fewer stores. Year-to-date revenues were $374.7 million, a 1.7% decrease from $381.3 million.
• Comparable Sales: Decreased 1.3% in Q2 2026 compared to the prior year, despite stronger in-store traffic.
• Gross Profit: $122.8 million in Q2 2026, a decrease of $4.5 million from $127.3 million in Q2 2025. Gross profit margin decreased 220 basis points to 56.9% (from 59.1% in Q2 2025).
• Adjusted EBITDA: $21.4 million in Q2 2026, down 8.5% ($2 million) from $23.4 million in Q2 2025. Year-to-date Adjusted EBITDA was $10.8 million, down 55.4% from $24.2 million.
• Net Earnings: $13.1 million in Q2 2026, down 16.6% from $15.7 million in Q2 2025. Year-to-date net earnings were $3.1 million, down 78.2% from $14.2 million.
• Earnings Per Share (Basic/Diluted): $0.26 in Q2 2026, compared to $0.32 in Q2 2025. Year-to-date EPS was $0.06, compared to $0.29.
• SG&A Expenses: $103.1 million in Q2 2026, a 2.6% decrease from $105.8 million in Q2 2025. The company noted a cost reduction of over $2.7 million in SG&A.
• Balance Sheet: Working capital was $149.6 million as of August 2, 2025, including $125.3 million in cash. The company had no significant long-term debt other than lease liabilities and no amounts drawn under bank credit facilities.
• NCIB: On July 31, 2025, the Company received TSX Venture Exchange approval to renew its NCIB, allowing the acquisition of up to 3,700,472 Class A Non-Voting Shares (approx. 10% of public float) between August 5, 2025, and August 4, 2026. During the prior twelve months, 390,600 shares were purchased for $0.9 million.
• Strategic Updates: Renovated stores outperformed the rest of the fleet in Q2. RW&CO is scheduled to open an 8,000 sq. ft. flagship store in Saint-Bruno, Québec, in October 2025.

Notable Quotes

• "Sales in the second quarter were among the best in the last few years, despite three fewer stores and the closure of Thyme Maternity. We were especially pleased with Reitmans' performance and the customer response to our Summer collection," said Andrea Limbardi, President and CEO of RCL.
• "Customers remained price-conscious, and we strategically moved inventory through focused promotions, which impacted year-on-year gross profit. Adjusted EBITDA was primarily impacted by foreign exchange, as we benefitted from a currency gain last year. We continued to focus on improving SG&A, achieving a reduction in costs of over $2.7 million."
• "Looking ahead, we're progressing on our five-year strategic plan, which includes driving brand growth through targeted investments in our retail footprint. In Q2, our renovated stores outperformed the rest of the fleet."