MONTREAL, Sept. 17, 2026 /CNW/ -- Reitmans (Canada) Limited ("RCL" or the "Company") (TSXV: RET) (TSXV: RET-A), one of Canada's leading specialty apparel retailers, today reported its financial results for its second quarter of fiscal 2027. Unless otherwise indicated, all comparisons of results for the second quarter ended August 1, 2026, are to the second quarter ended August 2, 2025, and all comparisons of results for the year to date ended August 1, 2026, are to the year to date ended August 2, 2025. All dollar amounts are in Canadian currency.

Highlights

   -- Gross profit margin increased 160 basis points to 58.5%. 
 
   -- Net revenues decreased 1.9% to $211.8 million and comparable sales1 
      decreased 1.5%. 
 
   -- Adjusted EBITDA1 was $18.8 million, $2.6 million below last year. 
 
   -- Net earnings were $10.1 million, or $0.20 per share. 

"Our second quarter reflected deliberate, strategic execution across our brands," said Andrea Limbardi, President and CEO of RCL. "While net revenues were modestly below last year, we meaningfully improved gross margin through stronger regular-price selling, a more disciplined promotional strategy and tighter inventory management. Inventory ended the quarter approximately 5.2% below last year, supporting improved merchandise margins and positioning us well for the balance of the year."

"Performance varied by channel during the quarter. Our comparable store sales increased and we saw continued strong momentum in our new flagship locations. The recently converted Reitmans concept flagship at Carrefour Laval and the expanded and renovated RW&CO Toronto Eaton Centre flagship both delivered double-digit sales growth. E-commerce revenues were lower than last year as we reduced clearance and promotional activity."

"The improvement in gross profit was offset by higher operating expenses, including freight costs, rent, store wages and advertising investments, as well as early work to develop a loyalty program. During the quarter, Reitmans marked its 100th anniversary through our 'We've Evolved' campaign and partnership with the WNBA's Toronto Tempo, initiatives that strengthened the brand's fashion and cultural relevance and generated encouraging shifts in brand perception."

"With a strong balance sheet and clear strategic priorities, we remain focused on disciplined execution, strengthening the customer experience across channels and advancing the initiatives that support sustainable, profitable growth over the long term."

 
(1) This is a Non-GAAP Financial Measure. See "Non-GAAP 
 Financial Measures & Supplementary Financial Measures" 
 for reconciliations of these measures. 
 

Selected Financial Information

 
(in millions of dollars,     Second quarter            Year to date fiscal 
except for gross profit % 
and earnings per share) 
(unaudited) 
                             2027    2026    Change    2027    2026    Change 
Net revenues                 $211.8  $215.9   (1.9 %)  $371.9  $374.7  (0.7 %) 
Gross profit                 $123.9  $122.8     0.9 %  $213.0  $211.2    0.9 % 
Gross profit %               58.5 %  56.9 %   160 bps  57.3 %  56.4 %   90 bps 
Selling, general and 
 administrative expenses      $93.1   $88.6     5.1 %  $174.9  $173.6    0.7 % 
Depreciation, amortization 
 and net impairment losses    $15.4   $14.5     6.2 %   $30.4   $28.6    6.3 % 
Strategic transformation 
 expenses                      $1.1       -       n/a    $1.4       -      n/a 
Net earnings                  $10.1   $13.1  (22.9 %)    $3.8    $3.1   22.6 % 
Adjusted EBITDA               $18.8   $21.4  (12.1 %)   $13.5   $10.8   25.0 % 
Earnings per share: 
     Basic                    $0.20   $0.26  (23.1 %)   $0.08   $0.06   33.3 % 
     Diluted                  $0.20   $0.26  (23.1 %)   $0.08   $0.06   33.3 % 
 

On August 1, 2026, RCL had working capital(1) of $149.2 million, including cash of $152.7 million compared to working capital of $137.2 million, including cash of $151.0 million as at January 31, 2026, and working capital of $149.6 million, including cash of $125.3 million as at August 2, 2025. At the end of the second quarter of 2027, RCL had no significant long-term debt other than lease liabilities and no amounts were drawn under the Company's bank credit facilities.

Second Quarter Overview

Net revenues decreased 1.9% to $211.8 million primarily due to lower transaction volume and reduced clearance activity compared to the prior year. Comparable sales, which include e-commerce net revenues, decreased 1.5%. Retail store performance remained resilient during the quarter, while e-commerce revenues were impacted by a more selective promotional approach.

Gross profit increased $1.1 million to $123.9 million, while gross margin improved 160 basis points to 58.5% of net revenues. The increase in gross profit and gross margin was primarily attributable to lower markdowns and promotional activity compared to the same quarter a year earlier.

The Company ended the quarter with inventory of $119.7 million, approximately 5.2% below the prior year, reflecting disciplined inventory management and supporting improved merchandise margins and regular-price selling.

Strategic transformation expenses of $1.1 million related to employee termination benefits and consulting fees associated with restructuring efforts to evolve the Company's operating structure.

Adjusted EBITDA was $18.8 million as compared to $21.4 million for the second quarter of 2026. The decrease of $2.6 million is primarily attributable to higher SG&A expenses that more than offset the increase in gross profit for the quarter.

Net earnings were $10.1 million ($0.20 basic and diluted earnings per share) as compared with net earnings of $13.1 million ($0.26 basic and diluted earnings per share) a year earlier.

The Company's complete financial statements including notes, and the Company's MD&A for the second quarter of fiscal 2027 are available online at www.sedarplus.ca.

Normal Course Issuer Bid ("NCIB")

During the year to date ended August 1, 2026, the Company purchased for cancellation 295,300 Class A non-voting Shares for an aggregate cash consideration of $0.6 million.

On July 30, 2026, the Company received approval from the TSX Venture Exchange to renew the NCIB. Under the renewed NCIB, the Company may acquire up to an aggregate of 3,000,000 Class A non-voting shares of the Company ("Shares") over the 12-month period commencing on August 5, 2026, and ending on August 4, 2027, representing approximately 10% of the public float of the Shares. Additionally, under the NCIB, the Company may not acquire more than 2% of the issued and outstanding Class A Shares at the time of purchase in any 30-day period.

Conference Call

The Company will host a conference call on September 18, 2026, at 8:30 am Eastern Time to discuss its second quarter financial results. Interested parties may join the conference call by dialing 1-888-699-1199 or 416-945-7677 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/pages/events-presentations 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 385 stores under three distinct banners consisting of 216 Reitmans, 85 PENN., and 84 RW&CO.

For more information, visit www.reitmanscanadalimited.com.

For further information, please contact:

 
Investor & Media RelationsReitmans      Caroline GoulianEVP & Chief Financial 
Canada LimitedEmail:                    OfficerReitmans (Canada) 
rclmedia@reitmans.com                   LimitedTelephone: (514) 384-1140Email: 
                                        cgoulian@reitmans.com 
 

NON-GAAP Financial Measures & Supplementary Financial Measures

This press release makes reference to certain non-GAAP measures. These measures are not recognized measures under International Financial Reporting Standards ("IFRS") and do not have a standardized meaning prescribed by IFRS. They are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement IFRS measures by providing further understanding of the Company's results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for the Company's analysis of its financial information reported under IFRS.

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. This press release indicates that Adjusted EBITDA as a percentage of net revenues is considered a non-GAAP financial ratio. The intent of presenting Adjusted EBITDA is to provide additional useful information to investors and analysts.