Canadian retailer Reitmans' net sales climb 7.2% YoY in Q1 FY24

Reitmans reported a 6.4 per cent YoY increase in comparable sales, including e-commerce net sales, during Q1 FY24, the company said in its financial results for the 13 weeks ended April 29, 2023.

Gross profit for Q1 FY24 also saw an uptick, with an increase of $4.1 million over Q1 FY23, reaching $88.1 million. However, the gross profit as a percentage of net sales dropped to 53.4 per cent in Q1 FY24 from 54.6 per cent in Q1 FY23.

The increased sales did not translate into net profitability for the quarter, with Reitmans reporting a net loss of $3.8 million for Q1 FY24. This reflects an increase in loss compared to the net loss of $1.7 million reported for Q1 FY23.

The adjusted results from operating activities for Q1 FY24 was a loss of $3.6 million, compared with a loss of $1 million for the first quarter of FY23. The additional loss of $2.6 million is mainly attributable to increased operating costs, partially offset by the increase in gross profit.

"I am very pleased with the start to fiscal 2024, against a background of higher interest rates and inflation impacting customers' shopping behaviours," said Stephen F Reitman, president and chief executive officer of Reitmans. "With supply chain conditions considerably improved in comparison to the first quarter of 2023, we benefitted from lower supply chain costs in the first quarter of 2024. We believe our ability to provide customers fashion merchandise at affordable prices through shopping in our stores or online, where orders are fulfilled from our network of stores or from our distribution centre, is an important contributor to our success."

Adjusted EBITDA for Q1 FY24 was reported at a loss of $1.2 million, a decrease from the $3.1 million profit reported in Q1 FY23. The decrease was mainly due to a rise in operating costs.

Fibre2Fashion News Desk (DP)