Reitmans Canada reports Q1 decline amidst challenging conditions
Reitmans store Credits: Facebook/Reitmans Canadian apparel retailer Reitmans Canada Limited (RCL) announced a challenging first quarter for the period ended May 3, 2025. The company reported a 4.1 percent decrease in net revenues, to 158.9 million Canadian dollars, coupled with a net loss of 10 million Canadian dollars, or 0.20 Canadian dollars per share, significantly wider than the 1.5 million loss reported a year prior. Comparable sales also saw a 4.5 percent decline. The downturn was primarily attributed to severe winter weather in February, which significantly impacted in-store traffic, and heightened economic uncertainty leading to more price-conscious consumers. "While our e-commerce revenue grew in Q1, it was not enough to offset lower in-store traffic resulting from near-record snowfall accumulations in some regions during February," stated Andrea Limbardi, president and CEO of RCL. She added, "We saw improvement once the weather cleared; however, consumers were more price-conscious amid ongoing economic uncertainty." This environment necessitated proactive promotional activity to manage inventory, which subsequently led to a 100-basis-point decrease in gross profit percentage, settling at 55.7 percent. Adjusted EBITDA was negative 10.6 million Canadian dollars, largely due to reduced gross profit, increased occupancy costs, and higher wages. Despite the overall performance, the Reitmans brand showed resilience. Limbardi highlighted its positive contribution, noting, "I am pleased with the performance of our Reitmans brand, which performed well in the quarter, responding to customers' concerns over the economy with its hallmark of great styles and quality at accessible price points." In response to the disappointing results, RCL is accelerating the implementation of its five-year strategic plan, initially unveiled in April. "This strategy is designed to drive long-term profitable growth and ultimately make our business more resilient," Limbardi said. Key initiatives include optimizing the store fleet, with three new Reitmans stores and one RW&CO store opening, alongside two Penn store relocations during the quarter. Furthermore, the company is advancing the first phase of its digital strategic roadmap, which involves newly designed front-end e-commerce storefronts for all three brands and a migration to Shopify.
Canadian apparel retailer Reitmans Canada Limited (RCL) announced a challenging first quarter for the period ended May 3, 2025. The company reported a 4.1 percent decrease in net revenues, to 158.9 million Canadian dollars, coupled with a net loss of 10 million Canadian dollars, or 0.20 Canadian dollars per share, significantly wider than the 1.5 million loss reported a year prior. Comparable sales also saw a 4.5 percent decline.
The downturn was primarily attributed to severe winter weather in February, which significantly impacted in-store traffic, and heightened economic uncertainty leading to more price-conscious consumers.
"While our e-commerce revenue grew in Q1, it was not enough to offset lower in-store traffic resulting from near-record snowfall accumulations in some regions during February," stated Andrea Limbardi, president and CEO of RCL. She added, "We saw improvement once the weather cleared; however, consumers were more price-conscious amid ongoing economic uncertainty."
This environment necessitated proactive promotional activity to manage inventory, which subsequently led to a 100-basis-point decrease in gross profit percentage, settling at 55.7 percent. Adjusted EBITDA was negative 10.6 million Canadian dollars, largely due to reduced gross profit, increased occupancy costs, and higher wages.
Despite the overall performance, the Reitmans brand showed resilience. Limbardi highlighted its positive contribution, noting, "I am pleased with the performance of our Reitmans brand, which performed well in the quarter, responding to customers' concerns over the economy with its hallmark of great styles and quality at accessible price points."
In response to the disappointing results, RCL is accelerating the implementation of its five-year strategic plan, initially unveiled in April. "This strategy is designed to drive long-term profitable growth and ultimately make our business more resilient," Limbardi said.
Key initiatives include optimizing the store fleet, with three new Reitmans stores and one RW&CO store opening, alongside two Penn store relocations during the quarter. Furthermore, the company is advancing the first phase of its digital strategic roadmap, which involves newly designed front-end e-commerce storefronts for all three brands and a migration to Shopify.
