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Reitmans (Canada)
(RET)
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Rating:58Neutral
Price Target:
C$2.00
▼(-4.76% Downside)
Action:Reiterated
Date:09/22/26
The score is driven primarily by mixed financial performance: strong cash generation and a manageable balance sheet are offset by a notable TTM revenue decline and pressured profitability. Technicals are weak with the stock trading below key moving averages and modestly negative momentum, while valuation is hindered by a negative P/E and no dividend yield provided. The latest earnings call was a positive offset due to margin improvement, liquidity strength, and strategic progress, but near-term revenue/expense headwinds and fuel-cost uncertainty remain key risks.
Positive Factors
Strong liquidity and low debt
Strong liquidity and minimal funded debt give Reitmans flexibility to fund inventory, digital initiatives, and store improvements without relying heavily on external financing. This supports resilience through weaker trading periods and preserves management’s ability to allocate capital toward longer-term growth.
Negative Factors
Sharp TTM revenue contraction
The sharp TTM revenue decline signals that recent trading weakness is material relative to the company’s established sales base. Sustained pressure on demand would reduce operating leverage, make fixed store costs harder to absorb, and limit the company’s ability to convert healthy gross margins into durable earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong liquidity and low debt
Strong liquidity and minimal funded debt give Reitmans flexibility to fund inventory, digital initiatives, and store improvements without relying heavily on external financing. This supports resilience through weaker trading periods and preserves management’s ability to allocate capital toward longer-term growth.
Read all positive factors
Reitmans (Canada) (RET) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$104.59M
Dividend Yield9.48%
Average Volume (3M)1.54K
Price to Earnings (P/E)―
Beta (1Y)0.41
Revenue Growth0.89%
EPS Growth-127.61%
CountryCA
Employees6,812
SectorGeneral
Sector StrengthN/A
IndustryApparel - Retail
Share Statistics
EPS (TTM)-0.01
Shares Outstanding13,440,000
10 Day Avg. Volume2,221
30 Day Avg. Volume1,540
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 primarily functions as a Canadian apparel retailer, with a core focus on women's clothing. The company also offers a selection of menswear. It engages with customers through both its network of physical stores and its onl...
How the Company Makes Money
Reitmans primarily makes money by selling apparel and accessories directly to consumers through (1) brick-and-mortar retail stores and (2) its online sales channels. Revenue is generated at the point of sale from merchandise purchases, with earnin...
Reitmans (Canada) Earnings Call Summary
Earnings Call Date:Sep 17, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Dec 17, 2026
Earnings Call Sentiment Positive
The call was broadly constructive, with strong gross margin expansion, resilient comparable store performance, positive results from renovated flagship locations, brand momentum, improved year-to-date profitability, strong liquidity, and disciplined inventory management. These positives were offset by lower quarterly revenue, comparable sales, adjusted EBITDA, and net earnings, along with higher operating expenses and uncertainty related to fuel costs and freight. Overall, the highlights significantly outweigh the lowlights, although quarterly performance remained mixed.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
Quarterly Revenue and Comparable Sales Decline
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 prior 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; due to the volatility seen in recent months, 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
67
Positive
Cash Flow
72
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
Positive
2.10
Price Trends
2.25
Positive
2.20
Positive
2.23
Positive
Market Momentum
0.02
Negative
56.25
Neutral
65.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RET, the sentiment is Positive. The current price of 2.1 is below the 20-day moving average (MA) of 2.27, below the 50-day MA of 2.25, and below the 200-day MA of 2.23, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 56.25 is Neutral, neither overbought nor oversold. The STOCH value of 65.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:RET.
Reitmans (Canada) Peers Comparison
UnderperformOutperform
Sector (55)
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% | |
69 Neutral | C$1.69B | 10.61 | 12.76% | 5.98% | -0.15% | -2.29% | |
58 Neutral | C$104.59M | -202.94 | -0.09% | 9.48% | 0.89% | -127.61% | |
58 Neutral | C$159.53M | 232.39 | 0.59% | ― | 3.94% | ― | |
56 Neutral | C$2.07B | -16.58 | -6.74% | 2.28% | -8.09% | -196.45% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | C$1.07B | 18.41 | 10.37% | ― | 12.26% | 20.96% |
* General Sector Average
TSE:RET
Reitmans (Canada)
2.35
0.13
5.86%
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Reitmans (Canada) Corporate Events
Business Operations and StrategyFinancial Disclosures
Reitmans Boosts Margins as Flagship Stores Outperform Despite Slight Sales Decline
Neutral
Sep 17, 2026
Reitmans (Canada) reported softer top-line performance in its second quarter of fiscal 2027, as net revenues slipped 1.9% to $211.8 million and comparable-store sales declined 1.5%. Despite lower sales, gross margin expanded to 58.5%, up 160 basis...
Business Operations and StrategyFinancial Disclosures
Reitmans Sets Date for Fiscal 2027 Q2 Results and Investor Call
Neutral
Aug 27, 2026
Reitmans (Canada) Limited will release its financial results for the second quarter of fiscal 2027 after markets close on September 17, 2026. The disclosure comes as the apparel retailer continues to leverage its multi-banner store network to comp...
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.