Reitmans (Canada) Limited

First-quarter net revenues were $158.9 million, down 4.1% from $165.7 million a year ago. Comparable sales, including e-commerce, decreased 4.5%, while e-commerce revenue increased 1%. Gross profit declined by $5.4 million to $88.5 million and gross margin fell 100 basis points to 55.7%. Adjusted EBITDA was a loss of $10.6 million versus positive $900,000 last year, and net loss widened to $10 million, or $0.20 per share, from $1.5 million, or $0.03 per share. The company did not provide quarterly revenue or earnings guidance, but reiterated its long-term targets of $1 billion in annual revenue and adjusted EBITDA of $60 million to $70 million by fiscal 2030, supported by about $100 million of planned growth investment over five years.

Andrea Limbardi framed the quarter as pressured by near-record snowfall, weaker store traffic, and ongoing consumer caution tied to the tariff and economic backdrop. She emphasized that the Reitmans brand is resonating, new stores and renovations are performing strongly, and the company is moving ahead with a five-year strategy built around store growth, digital modernization, and operational efficiency. Her tone was candid about the disappointing quarter but confident in the long-term plan.

Caroline Goulian detailed the financial deterioration: revenue down 4.1% to $158.9 million, gross profit down $5.4 million to $88.5 million, gross margin down to 55.7%, and adjusted EBITDA at a $10.6 million loss versus $900,000 last year. She said SG&A rose 4.2%, driven mainly by a $1.9 million increase in occupancy costs and an $800,000 increase in-store personnel costs. She also highlighted a solid balance sheet with $134.8 million of working capital, $85.4 million of cash, $135 million of inventory, no long-term debt other than lease liabilities, and no borrowings on credit facilities; she added that the company bought back 136,300 shares for $300,000 in the quarter and 318,200 shares since the NCIB began, returning $800,000 to shareholders.

The main analyst challenge focused on whether store growth is the right answer when SG&A looks elevated relative to sales, and whether cost discipline is being undermined. Limbardi responded that recent openings and renovations are performing well above the rest of the fleet, but acknowledged SG&A is an area of opportunity and said the company is doing a deep dive to improve productivity and reduce those costs. The analyst also questioned shareholder engagement and governance; management said engaging shareholders is a priority and pointed to increased communication efforts, including holding earnings calls after not doing so before.