Canadian womenswear retailer Reitmans has reported its net earnings declined by 81.0% to C$14.8m ($10.7m) in financial year 2024 (FY24), from C$77.7m in FY23.  

This sharp decline is largely due to the recognition of deferred income taxes in financial year 2023, a decrease in gross profit, and increased operating costs. 

The retailer's basic and diluted earnings per share also fell to C$0.30, a stark contrast to the C$1.59 reported in FY23.  

During the year ending 3 February 2024, the net revenues of Reitmans saw a slight decrease of 1.1%, totalling C$794.7m in FY24, down from C$803.3m in FY23.  

The company attributes this decline to lower average transaction values and heightened promotional activities. 

Comparable sales, inclusive of e-commerce net sales, decreased by 3.2% during FY24.

The retailer saw its gross profit decrease to C$431.0m in FY24, down by C$20.4m when compared with C$451.4m for FY23.  

Consequently, gross profit as a percentage of net revenues also dropped to 54.2% from 56.2%. 

Its adjusted return on assets for FY24 was C$22.0m, a decrease from C$45.7m in FY23 while adjusted earnings before interest, taxes, depreciation, and amortisation fell to C$29.2m from C$57.0m in the previous year.  

In the fourth quarter of FY24, Reitmans reported no net earnings, a significant downturn from the $27.5m net earnings in the same quarter of the previous year.  

However, net revenues for the quarter increased by 3.8% to C$221.0m, and gross profit saw a rise of C$5.4m to C$114.9m. 

Reitmans president and CEO Andrea Limbardi said: "Results from operating activities for the fourth quarter of fiscal 2024 and the full fiscal 2024 year were amongst the best for RCL 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.”