MONTREAL, April 9, 2026 /CNW/ - Reitmans (Canada) Limited ("RCL" or the "Company") (TSXV:RET) (TSXV:RET), one of Canada's leading specialty apparel retailers, today reported its financial results for the fourth quarter and year ended January 31, 2026. Unless otherwise indicated, all comparisons are to the fourth quarter and year ended February 1, 2025. All dollar amounts are in Canadian currency.
Highlights
Net revenues grew 1.2% to $207.2 million for the quarter and 0.4% to $776.8 million for the year.
Comparable sales1, which include e-commerce net revenues, were up 0.4% for the quarter but were down 0.7% for the year.
Gross profit % increased 300 basis points for the quarter but was down 30 basis points for the year.
Selling General & Administrative (SG&A) expenses, excluding strategic transformation expenses, were relatively flat in the quarter and higher by $3.5 million for the year.
Adjusted EBITDA1 grew by $4.8 million to $2.2 million for the quarter but decreased $6.7 million to $18.7 million for the year, mostly due to the first quarter results.
Net loss was $4.9 million for the quarter and $0.9 million for the year.
"RCL had a solid fourth quarter, with year-over-year growth in net revenues, gross profit margin, and adjusted EBITDA," said Andrea Limbardi, President and CEO of RCL. "Comparable sales were up 0.4%, but we achieved this with fewer promotions, as we performed particularly well during the peak Holiday moments. We continued to advance our five-year strategic plan, Designed for the Future, with the launch of our new brand websites on Shopify, as well as opening the first RW&CO's menswear–only pop-up store in Yorkdale Shopping Centre in Ontario and a Reitmans store in British Columbia. We also launched a significant initiative to reorganize our workforce, representing $5.5 million in strategic transformation expenses during the quarter, which we expect to drive improved productivity beginning in fiscal 2027."
"While our five-year strategy is still in its early days, we made substantial progress in fiscal 2026. We made significant investments in our footprint and brands, completing 13 new store openings, 2 additional relocations, 5 expansions, and refreshing 17 locations. We also closed 15 stores to sharpen our focus on more optimal locations. The opening of the RW&CO Saint–Bruno flagship marked an important step for the brand's elevated positioning, along with continued strong performance in menswear; Reitmans customers responded well to a continued shift in perception and the introduction of on–trend collections throughout the year; and PENN. introduced its new store experience sales model, which has since been rolled out across the entire chain."
"In fiscal 2027, RCL will continue to focus on disciplined execution, strengthening customer experience, and advancing its strategic investment in stores. Significantly, the Reitmans brand will open a new Carrefour Laval flagship location in April 2026. As we enter our 100th year in business, and as our strategy progresses, RCL is evolving into a more resilient business and is positioning itself to deliver strong, sustainable growth in the years ahead."
Selected Financial Information
(in millions of dollars, except for gross profit % and earnings per share) (unaudited)
Fourth quarter
Fiscal Year
2026
2025
Change
2026
2025
Change
Net revenues
$207.2
$204.8
1.2 %
$776.8
$773.8
0.4 %
Gross profit
$113.8
$106.2
7.2 %
$434.5
$435.0
(0.1 %)
Gross profit %
54.9 %
51.9 %
300 bps
55.9 %
56.2 %
(30 bps)
Selling, general and administrative expenses
$112.9
$112.6
0.3 %
$420.7
$417.2
0.8 %
Strategic transformation expenses
$5.5
-
n/a
$7.0
-
n/a
Net (loss) earnings
($4.9)
($4.2)
(16.7 %)
($0.9)
$12.1
n/a
Adjusted EBITDA1
$2.2
($2.6)
184.6 %
$18.7
$25.4
(26.4 %)
Earnings (loss) per share:
Basic
($0.10)
($0.08)
(25.0 %)
($0.02)
$0.25
n/a
Diluted
($0.10)
($0.08)
(25.0 %)
($0.02)
$0.24
n/a
1
This is a Non-GAAP Financial Measure. See "Non-GAAP Financial Measures & Supplementary Financial Measures" for reconciliations of these measures.
Fourth Quarter Overview
Net revenues increased by $2.4 million, or 1.2%, to $207.2 million, despite a lower store count year-over-year. Comparable sales1, which include e-commerce net revenues, increased 0.4%, primarily due to less markdowns and promotional activity, resulting in higher transaction value.
Gross profit increased by $7.6 million to $113.8 million. Gross profit as a percentage of net revenues was 54.9%, which was 300bps higher than the same quarter in the prior year. The increase in gross profit and gross profit percentage was primarily due to less markdowns and promotional activity.
Adjusted EBITDA1 increased by $4.8 million to $2.2 million. The increase was largely due to higher gross profit.
The Company incurred strategic transformation costs of $5.5 million related to personnel expenses and consulting fees in the quarter.
Net loss was $4.9 million compared to a loss of $4.2 million in the fourth quarter of the prior year.
On January 31, 2026, RCL had working capital1 of $137.2 million, including cash of $151.0 million compared to working capital of $165.7 million, including cash of $158.1 million at the prior year end. As at January 31, 2026, and February 1, 2025, RCL had no long-term debt other than lease liabilities, and no amounts were drawn under the Company's bank credit facilities.
Conference Call
The Company will host a conference call on April 10, 2026, at 8:30 am Eastern Time to discuss its fourth quarter and full year financial results. Interested parties may join the conference call by dialing 1-833-752-3725 or 647-846-8584 approximately 15 minutes prior to the call to secure a line.
A live audio webcast of the call will be available at https://www.reitmanscanadalimited.com/events-presentations.aspx?lang=en and will be available for replay at this website for 12 months.
About Reitmans (Canada) Limited
Reitmans (Canada) Limited is one of Canada's leading specialty apparel retailers for women and men, with retail outlets throughout the country. The Company operates 388 stores under three distinct banners consisting of 218 Reitmans, 85 PENN., and 85 RW&CO.
For more information, visit www.reitmanscanadalimited.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Alexandra Cohen
VP, Corporate Communications
Reitmans (Canada) Limited
Telephone: (514) 384-1140
Email: [email protected]
Caroline Goulian
EVP & Chief Financial Officer
Reitmans (Canada) Limited
Telephone: (514) 384-1140
Email: [email protected]
NON-GAAP Financial Measures
This press release discusses the following non-GAAP financial measures: adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"), and working capital. In the third quarter of 2026, the Company began excluding strategic transformation expenses from Adjusted EBITDA. This press release also indicates that Adjusted EBITDA as a percentage of net revenues is considered non-GAAP financial ratio. The intent of presenting Adjusted EBITDA is to provide additional useful information to investors and analysts.
Adjusted EBITDA is currently defined as net (loss) earnings before depreciation, amortization, net impairment of non-financial assets, interest expense, interest income, income tax expense/recovery, and adjusted for the impact of certain items, such as strategic transformation expenses, pension windup-related costs, contract termination costs and a deduction of interest expense and depreciation relating to leases accounted for under IFRS 16, Leases. The Company began excluding strategic transformation expense from Adjusted EBITDA in the third quarter of 2026. Management believes that Adjusted EBITDA is an important indicator of the Company's ability to generate liquidity through operating cash flow to fund working capital needs and fund capital expenditures and uses this metric for this purpose. Management believes that Adjusted EBITDA as a percentage of net revenues indicates how much liquidity is generated for each dollar of net revenues. The exclusion of interest income and expenses, other than interest expense related to lease liabilities as explained hereafter, eliminates the impact on earnings derived from non-operational activities. The exclusion of depreciation, amortization and net impairment losses, other than depreciation related to right-of-use assets as explained hereafter, eliminates the non-cash impact and the exclusion of strategic transformation expenses, pension windup-related costs, and contract termination costs adjust the results to better reflect the on-going business. Strategic transformation expenses, which consist of employee termination benefits and consulting fees, are adjusted as they represent specific expenses related to restructuring efforts to evolve the Company's operating structure as part of the implementation of the Company's five-year strategic plan. These expenses are limited to the project's timeframe and occur before any ongoing benefits are achieved. Adjusting such expenses can also be useful in assessing financial performance across periods on a comparable basis. Under IFRS 16, Leases, the characteristics of some leases result in lease payments being recognized in net earnings in the period in which the performance or use occurs while other leases are recorded as right-of-use assets with a corresponding lease liability recognized, which results in depreciation of those assets and interest expense from those liabilities. Management is presenting its Adjusted EBITDA to reflect the payments of its store and equipment lease obligations on a consistent basis. As such, the initial addback of depreciation of right-of-use assets and interest on lease obligations are removed from the calculation of Adjusted EBITDA, as this better reflects the operational cash flow impact of its leases.
Working capital is defined as current assets less current liabilities. Management believes that working capital provides information that is helpful to understand the financial condition of the Company. Due to the seasonality of the Company's business, it is more relevant to compare the working capital position at the same point in time.
Reconciliation of NON-GAAP Financial Measures
The tables below provide a reconciliation of net (loss) earnings to Adjusted EBITDA:
(in millions of dollars)
Fourth quarter of
Fiscal
2026
2025
2026
2025
Net (loss) earnings
($4.9)
($4.2)
($0.9)
$12.1
Depreciation, amortization and net impairment losses on property and equipment, and intangible assets
4.4
3.5
16.7
14.4
Depreciation on right-of-use assets
10.7
10.2
41.4
39.4
Interest expense on lease liabilities
2.4
2.5
9.9
10.0
Interest income
(1.1)
(1.6)
(4.1)
(5.8)
Income tax (recovery) expense
(1.7)
(2.0)
(0.2)
3.8
Strategic transformation expenses
5.5
-
7.0
-
Pension windup-related costs
-
1.2
0.2
0.4
Contract termination costs1
-
0.5
-
0.5
Rent impact from IFRS 16,
