1. News
September 23, 2022

Reitmans reports 33.0% sales growth for second quarter of 2023

The company’s sales have increased by 30.5% to C$383.1m ($282.95m) for the full year to date.

Canadian women’s apparel retailer Reitmans has reported C$229.2m ($169.3m) in sales for the second quarter (Q2) of fiscal 2023 (FY23), which ended on 30 July.

The figure represents a 33.0% increase of C$56.9m from the same period of the previous year (FY22).

Sales were driven by a growth in customer traffic across Reitmans’ stores, higher average transaction values and other factors.

The retailer’s e-commerce sales remained strong during the quarter, representing around 25% of its total sales.

Reitmans’ gross profit rose by C$43.0m to C$138.7m in the three-month period, compared with C$95.7m ($70.7m) in the same period of FY22.

The company’s gross profit as a percentage of its sales for the period grew from 55.5% to 60.5% year-on-year.

Reitmans’ net earnings from its continuing operations were C$37.3m in the quarter, against C$23.9m in Q2 2022.

Its basic and diluted earnings per share (EPS) grew from C$0.49 to C$0.76 year-over-year.

In addition, the retailer’s adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) from continuing operations increased FROM C$23.4m to C$39.6m year-on-year.

In a statement, Reitmans said: “The company successfully emerged from the Companies’ Creditors Arrangement Act (CCAA) proceedings in January 2022 with a clear vision and direction.

“Effective restructuring of the banners, new branding initiatives and a customer-centric product offering all contributed to the success reflected in our year-to-date fiscal 2023 results.

“The company successfully mitigated difficult economic headwinds and supply chain delays by closely managing logistics and inventory levels.

“In addition, the company benefited from increased consumer spending and favourable year-over-year exchange rates.

“Short-term, preferential rent arrangements put in place while under CCAA protection also contributed to the quarter performance.”

As of 30 July, Reitmans operated 236 Reitmans stores and 91 Penningtons outlets, as well as 77 RW&CO locations.

The company registered a 24.1% increase in full-year revenue for FY22.