Canadian retailer Reitmans' revenue up 3.8% in Q4 FY24

Gross profit for the fourth quarter of 2024 increased $5.4 million to $114.9 million as compared with $109.5 million for the fourth quarter of 2023. Gross profit as a percentage of net revenues for the fourth quarter of 2024 increased to 52.0 per cent from 51.4 per cent for the fourth quarter of 2023. The improvement in gross profit and the increase in gross profit as a percentage of net revenues was primarily a result of the impact of inclusion of a 14^th week (instead of the normal 13 weeks) of $5.5 million, lower supply chain costs in the fourth quarter of 2024 as global shipping industry disruptions were prevalent in the fourth quarter of 2023, partially offset by an unfavourable foreign exchange impact of approximately $2.6 million on dollar denominated purchases in the fourth quarter of 2024, the company said in a press release.

"We are pleased with the results for the fourth quarter of 2024 which capped off a year that saw significant headwinds for the retail industry with high inflation and high interest rates negatively impacting consumer shopping behaviour,” said Andrea Limbardi, president and chief executive officer. "Results from operating activities for the fourth quarter of fiscal 2024 and the full fiscal 2024 year were amongst the best for the company in a decade, even after excluding the extra week of fiscal 2024 and an unfavourable foreign exchange impact. Having come off an exceptional year in fiscal 2023, driven by post COVID demand, fiscal 2024 was a year adjusting to a new reality in consumer shopping behaviour. It is positioning itself to accelerate growth through initiatives aimed at delivering exceptional products at competitive prices across all channels. To facilitate this growth, modernisation in digital technology including 3D design capabilities, improved handling systems in our distribution facility and a new point of sale system are but a few of the improvements being delivered over the next 12 months. We are confident of the future and remain focused on delivering long-term value to our shareholders.”

Net revenues for fiscal 2024 decreased by $8.6 million, or 1.1 per cent, to $794.7 million, despite an additional week of net revenues of $10.0 million in fiscal 2024.Comparable sales, which include e-commerce net sales, decreased 3.2 per cent during the fiscal 2024. The decrease in net revenues and comparable sales was primarily due to lower average transaction values and higher promotional activity.

Gross profit for fiscal 2024 decreased from $20.4 million to $431.0 million as compared with $451.4 million for fiscal 2023, despite the inclusion of a 53^rd week (instead of the normal 52 weeks) of $5.5 million. Gross profit as a percentage of net revenues for fiscal 2024 decreased to 54.2 per cent from 56.2 per cent for fiscal 2023.

Fibre2Fashion News Desk (RR)