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Reitmans (Canada)
(RET.A)
Select Model
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Rating:59Neutral
Price Target:
C$2.00
▲(5.26% Upside)
Action:Reiterated
Date:09/22/26
The score is driven primarily by solid cash generation and a currently manageable balance sheet, which support resilience despite weaker recent earnings. Offsetting this are material top-line pressure and deteriorating profitability, plus a mixed earnings-call outlook with cost and freight uncertainty. Technicals are neutral and valuation is unfavorable due to the negative P/E and no provided dividend support.
Positive Factors
Strong cash generation and liquidity
Meaningful operating and free cash flow provides internal funding for inventory, stores, digital initiatives, and other priorities. Combined with substantial cash on hand, this supports resilience and gives management flexibility through weaker apparel demand.
Negative Factors
Recent top-line pressure
Sharp recent revenue deterioration signals weakened demand and reduced earnings power despite healthy gross margins. Continued sales pressure would limit operating leverage, make fixed store costs harder to absorb, and challenge the durability of current cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and liquidity
Meaningful operating and free cash flow provides internal funding for inventory, stores, digital initiatives, and other priorities. Combined with substantial cash on hand, this supports resilience and gives management flexibility through weaker apparel demand.
Read all positive factors
Reitmans (Canada) (RET.A) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$104.59M
Dividend Yield9.05%
Average Volume (3M)28.87K
Price to Earnings (P/E)―
Beta (1Y)0.27
Revenue Growth0.89%
EPS Growth-127.61%
CountryCA
Employees5,000
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)-0.01
Shares Outstanding36,564,022
10 Day Avg. Volume23,570
30 Day Avg. Volume28,868
Financial Highlights & Ratios
PEG Ratio1.03
Price to Book (P/B)0.39
Price to Sales (P/S)0.14
P/FCF Ratio3.22
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Reitmans (Canada) Business Overview & Revenue Model
Company Description
Reitmans (Canada) Limited is a Canadian clothing retailer primarily focused on women's apparel, though it also offers menswear. The company reaches its clientele through both brick-and-mortar stores and an online presence. As of April 21, 2022, it...
How the Company Makes Money
Reitmans generates revenue primarily by selling women’s apparel and accessories directly to consumers through (1) physical retail stores and (2) its e-commerce websites for each banner. Sales are driven by merchandising seasonal and core assortmen...
Reitmans (Canada) Earnings Call Summary
Earnings Call Date:Sep 17, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Dec 17, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture. The company highlighted a 160-basis-point gross margin improvement, resilient comparable store performance, strong results from renovated flagships, year-to-date profitability growth, disciplined inventory management, and a strong cash position with no long-term debt other than lease liabilities. However, quarterly revenue, comparable sales, adjusted EBITDA, and net earnings declined, while higher SG&A, freight costs, and strategic transformation expenses pressured results. Management remained encouraged by brand performance and long-term strategic progress, but near-term fuel-cost uncertainty remains.Positive Updates
Gross Margin Expansion
Gross profit increased by $1.1 million to $123.9 million, while gross margin improved by 160 basis points to 58.5% of net revenues. The improvement was driven by stronger regular-price selling, a more disciplined approach to promotions, and tighter inventory management.
Negative Updates
Lower Quarterly Revenue and Comparable Sales
Net revenues declined 1.9% year over year to $211.8 million, while comparable sales including e-commerce decreased 1.5%. The decreases were attributable to lower transaction volume and reduced clearance activity compared with the same period last year.
Read all updates
Q2-2027 Updates
Positive
Negative
Gross Margin Expansion
Gross profit increased by $1.1 million to $123.9 million, while gross margin improved by 160 basis points to 58.5% of net revenues. The improvement was driven by stronger regular-price selling, a more disciplined approach to promotions, and tighter inventory management.
Read all positive updates
Company Guidance
Management expects the challenging economic and geopolitical environment, including higher fuel costs, to continue for the near term, but said it remains difficult to predict the impact higher fuel costs will have on the business going forward or how long these costs will be elevated; the company remains focused on advancing its strategy, building a stronger, more resilient business, and being a destination Canadians rely on for finding the best quality fashion at the best value.Reitmans (Canada) Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
62
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Jan 2026 | Jan 2024 | Jan 2023 | Jan 2022 | Jan 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 774.07M | 776.85M | 773.80M | 794.69M | 661.95M | 533.36M |
| Gross Profit | 376.46M | 434.55M | 435.04M | 431.00M | 353.17M | 246.25M |
| EBITDA | 66.32M | 66.96M | 78.44M | 76.22M | 94.70M | 194.46M |
| Net Income | -274.00K | -916.00K | 12.14M | 14.81M | 158.26M | -172.22M |
Balance Sheet | ||||||
| Total Assets | 571.24M | 553.46M | 574.09M | 490.75M | 314.27M | 397.23M |
| Cash, Cash Equivalents and Short-Term Investments | 152.71M | 150.96M | 158.12M | 116.65M | 25.50M | 77.92M |
| Total Debt | 167.10M | 161.55M | 155.40M | 137.59M | 81.94M | 123.22M |
| Total Liabilities | 277.05M | 266.94M | 277.66M | 211.73M | 130.45M | 375.55M |
| Stockholders Equity | 294.19M | 286.52M | 296.43M | 279.02M | 183.83M | 21.68M |
Cash Flow | ||||||
| Free Cash Flow | 66.83M | 34.60M | 73.06M | 51.83M | -35.38M | 34.03M |
| Operating Cash Flow | 93.80M | 71.62M | 104.26M | 69.53M | -24.73M | 40.20M |
| Investing Cash Flow | -26.97M | -37.02M | -31.19M | -17.70M | -15.22M | -6.16M |
| Financing Cash Flow | -43.54M | -45.53M | -40.03M | -39.90M | -9.19M | -46.82M |
Reitmans (Canada) Technical Analysis
Negative
1.90
Price Trends
2.05
Negative
2.02
Negative
2.03
Negative
Market Momentum
<0.01
Positive
46.34
Neutral
78.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RET.A, the sentiment is Negative. The current price of 1.9 is below the 20-day moving average (MA) of 2.05, below the 50-day MA of 2.05, and below the 200-day MA of 2.03, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.34 is Neutral, neither overbought nor oversold. The STOCH value of 78.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:RET.A.
Reitmans (Canada) Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | C$14.05B | 31.42 | 34.33% | ― | 37.45% | 92.29% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | C$104.59M | -202.94 | -0.09% | 9.05% | 0.89% | -127.61% | |
58 Neutral | C$159.53M | 232.39 | 0.59% | ― | 3.94% | ― | |
56 Neutral | C$10.81B | 75.33 | 2.13% | 2.32% | 40.42% | -83.20% | |
54 Neutral | C$1.07B | 18.41 | 10.37% | ― | 12.26% | 20.96% |
* Consumer Cyclical Sector Average
TSE:RET.A
Reitmans (Canada)
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-0.48%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.