Canadian retailer Reitmans' net sales at $378.3 mn in H1 FY24

15 Sep '23

3 min read

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Reitmans Limited's net sales dropped by 1.3 per cent to $378.3 million in H1 FY24 and a significant reduction in net earnings to $9.5 million, equating to $0.20 basic and $0.19 diluted EPS.
The gross profit also saw a decline, amounting to $206.4 million or 54.6 per cent of sales.
Q2 FY24 saw a 7 per cent fall in net sales to $213.2 million.

Reitmans (Canada) Limited (RCL), a leading specialty apparel retailer, has reported a decrease in net sales for the first half (H1) of fiscal 2024 (FY24), amounting to $378.3 million, down by $4.8 million or 1.3 per cent compared to H1 FY23. This period also saw a decline in comparable sales, which encompass e-commerce net sales, reporting a decrease of 1.6 per cent.

Gross profit for the H1 FY24 stood at $206.4 million, a considerable decrease from the $222.7 million reported in H1 FY23, thereby reducing the gross profit as a percentage of sales to 54.6 per cent from 58.1 per cent.

Net earnings too took a hit, registering at $9.5 million, which translates to $0.20 basic and $0.19 diluted earnings per share (EPS), a substantial decrease from $35.6 million, or $0.73 both basic and diluted EPS in H1 FY23, the company said in a press release.

Adjusted EBITDA for the period was reported at $17.9 million, witnessing a decline from $42.7 million in H1 FY23. The decrease of $24.8 million is largely attributed to the decline in gross profit and an uptick in operating costs.

Focusing on the performance in the second quarter of fiscal 2024 (Q2 FY24), the net sales were reported to be $213.2 million, showing a decrease of $16 million or 7 per cent as compared to the second quarter of FY23. The comparable sales, including e-commerce net sales, mirrored this decline, reducing by 7 per cent.

The gross profit for Q2 FY24 decreased significantly to $118.3 million compared to $138.7 million in the same period of 2023. Consequently, the gross profit as a percentage of net sales also decreased, recording 55.5 per cent, a reduction from 60.5 per cent in the previous year.

Net earnings for Q2 FY24 were $13.4 million, translating to $0.27 both basic and diluted EPS, a marked decrease from the $37.3 million, or $0.76 both basic and diluted EPS reported in the second quarter of FY23. Furthermore, the adjusted EBITDA for the quarter stood at $19.2 million, which is a decline from $39.6 million reported in the corresponding quarter of the previous year.

"We saw positive customer response in our second quarter with traffic and conversion remaining relatively stable in our stores despite the challenging economic environment. Additionally, RCL has a strong balance sheet and cashflows from operations in the quarter contributed to the strength in financial position." said Andrea Limbardi, president and chief executive officer of RCL. "We are continuing to invest in our strategic initiatives to build on our strong market position and we remain disciplined to continue to deliver value and choice to our customers whether shopping in our stores or online."

Fibre2Fashion News Desk (DP)

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